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US close: S&P 500 hits another record as Google jumps

- S&P 500 hits another record
- Google reaches all-time high
- Fed seen postponing taper until next year

Dow Jones: 0.18%
Nasdaq: Nasdaq: 1.32
S&P 500: 0.66%

Upbeat corporate earnings and hopes over a continuation of monetary stimulus gave markets a boost on Friday, helping the S&P 500 to a fresh all-time high.

Sentiment was lifted after a host of companies beat quarterly forecasts, including Google which surged 14% past $1,000 for the first time.

This boosted the S&P 500 to its second record close in as many sessions, up 0.7% at 1,744.50. The index rose 2.4% on the week, its best weekly gain since July.

As the dust begins to settle following the last-minute deal on Wednesday to extend the debt ceiling and reopen the US government, markets are hoping that the Federal Reserve could delay tapering stimulus until early 2014, given that the shutdown is likely to have dampened growth in the fourth quarter.

‘US politicians struck a last-minute debt deal but some damage to US activity has already been done. Combined with this year’s sharp fiscal tightening and significant rise in bond yields, this could leave H2 growth clearly weaker than expected,’ said analysts at Danske Bank.

Investors are now looking ahead to the delayed release of the September US employment report next Tuesday, which will be a key factor in the Fed’s next move.

According to the median of 40 responses in a Bloomberg News survey of economists, the Fed will trim the rate of asset purchases from $85bn to $70bn a month at its meeting in March.

Google sets new highs

Google’s share price high a record high of $1,011.41 after third-quarter results released after-hours on Thursday beat expectations. The internet giant reported adjusted earnings of $10.74 a share on sales of $11.92bn in the quarter, ahead of consensus forecasts for $10.36 and $11.7bn, respectively, helped by strong growth in advertising.

Banking heavyweight Morgan Stanley swung to a better-than-expected profit in the third quarter, reporting a net income of $906m, up from a loss of $1.02bn the year before.

US conglomerate General Electric was also higher in pre-market trade after adjusted earnings totalled 40 cents a share in the third quarter, ahead of the 35 cents estimate.

Chipotle Mexican Grill, Align Technology, Paker-Hannifin and Baker Hughes were also making gains after their earnings reports.

Internet retailer Amazon.com jumped after analysts at UBS upgraded the stock from ‘hold’ to ‘buy’, saying they expect a pick-up in revenue growth in the fourth quarter.

However, UnitedHealth and Intuitive Surgical fell after failing to meet estimates.

S&P 500 – Risers
Chipotle Mexican Grill Inc. (CMG) $509.74 +16.10%
Google Inc. (GOOG) $1,011.41 +13.80%
First Solar Inc. (FSLR) $49.97 +8.70%
Baker Hughes Inc. (BHI) $55.55 +7.28%
Amazon.Com Inc. (AMZN) $328.93 +5.84%
Ingersoll Rand Ltd. (IR) $66.85 +5.24%
Parker-Hannifin Corp. (PH) $112.41 +5.23%
NRG Energy Inc. (NRG) $29.30 +4.79%
Pioneer Natural Resources Co. (PXD) $224.95 +4.25%
Stanley Black & Decker Inc. (SWK) $77.16 +3.75%

S&P 500 – Fallers
Intuitive Surgical Inc. (ISRG) $376.52 -5.66%
Interpublic Group of Companies Inc. (IPG) $16.04 -5.03%
J.C. Penney Co. Inc. (JCP) $7.00 -4.76%
People’s United Financial Inc. (PBCT) $14.37 -4.64%
Tyson Foods Inc. (TSN) $28.45 -4.43%
Unitedhealth Group Inc. (UNH) $68.76 -3.66%
CIGNA Corp. (CI) $74.95 -3.27%
Mylan Inc. (MYL) $38.55 -2.92%
Humana Inc. (HUM) $91.23 -2.79%
Lowe’s Companies Inc. (LOW) $47.66 -2.77%

Dow Jones I.A – Risers
General Electric Co. (GE) $25.55 +3.53%
Verizon Communications Inc. (VZ) $50.01 +2.27%
Nike Inc. (NKE) $75.93 +1.86%
Caterpillar Inc. (CAT) $87.34 +1.74%
Walt Disney Co. (DIS) $67.15 +1.10%
Visa Inc. (V) $200.45 +1.09%
Pfizer Inc. (PFE) $30.51 +0.83%
Cisco Systems Inc. (CSCO) $22.96 +0.79%
Travelers Company Inc. (TRV) $86.58 +0.65%
Coca-Cola Co. (KO) $38.78 +0.60%

Dow Jones I.A – Fallers
Home Depot Inc. (HD) $74.69 -1.39%
Merck & Co. Inc. (MRK) $46.61 -1.06%
International Business Machines Corp. (IBM) $173.78 -0.60%
Johnson & Johnson (JNJ) $91.63 -0.37%
McDonald’s Corp. (MCD) $95.20 -0.28%
United Technologies Corp. (UTX) $107.74 -0.26%
Intel Corp. (INTC) $23.88 -0.19%
Wal-Mart Stores Inc. (WMT) $75.71 -0.09%
E.I. du Pont de Nemours and Co. (DD) $59.62 -0.03%
Procter & Gamble Co. (PG) $79.41 -0.01%

Nasdaq 100 – Risers
Google Inc. (GOOG) $1,011.41 +13.80%
Baidu Inc. (BIDU) $165.91 +7.85%
Amazon.Com Inc. (AMZN) $328.93 +5.84%
Facebook Inc. (FB) $54.22 +3.85%
Green Mountain Coffee Roasters Inc. (GMCR) $64.41 +3.60%
Sears Holdings Corp. (SHLD) $56.39 +3.47%
Seagate Technology Plc (STX) $50.04 +3.27%
Liberty Interactive Corp (LINTA) $27.10 +2.92%
Fossil Group Inc (FOSL) $121.75 +2.22%
F5 Networks Inc. (FFIV) $87.81 +2.20%

Nasdaq 100 – Fallers
Intuitive Surgical Inc. (ISRG) $376.52 -5.66%
Mylan Inc. (MYL) $38.55 -2.92%
Alexion Pharmaceuticals Inc. (ALXN) $108.43 -2.13%
Regeneron Pharmaceuticals Inc. (REGN) $303.56 -1.40%
DIRECTV (DTV) $61.65 -1.20%
Nuance Communications Inc. (NUAN) $17.14 -1.04%
O’Reilly Automotive Inc. (ORLY) $133.93 -0.93%
Comcast Corp. (CMCSA) $47.03 -0.92%
Altera Corp. (ALTR) $37.48 -0.91%
Biogen Idec Inc. (BIIB) $244.90 -0.89%

BC

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