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US midday: SP 500 hits record high

- Google shares soaring 13 per cent higher
– Wave of positive company results
– SP 500 at new record high
– Fed’s Tarullo and Lacker make no policy comments
– Fed (Evans): Low rates needed

Dow Jones Industrials: 0.25%
Nasdaq Composite: 1.32%
S&P 500: 0.68%

US stocks were setting new records at the halfway point of the session, as markets reacted to a host of better-than-expected earnings reports out from a number of blue chips – particularly from tech giant Google.

The S&P 500 index was extending gains after finishing at its highest ever close of 1,733.15 on Thursday night as analysts attempted to predict how the recent political uncertainty on Capitol Hill will affect the outlook for monetary policy.

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.

Chief Analyst Allan von Mehren from Danske Bank said that the central bank will likely begin to taper at its meeting at the end of January. ‘The Fed likely needs to see the recovery on a stronger footing before it will start to taper. Hence hard data on private consumption, capex and job growth should improve in order for the Fed to move,’ he said.

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

Google’s shares hit a record high above the $1,000-per-share level following third-quarter results last night that 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.

Earnings per share, once debt valuation adjustments are taken into account, came in at 55 US cents versus the 40 cents forecast by analysts. Revenues came in at $8.1bn, versus the $7.7bn which had been estimated by analysts.

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

Chipotle Mexican Grill, Align Technology, Parker-Hannifin and Baker Hughes were also making gains ahead after their earnings reports. However AMD dropped sharply despite beating expectations as it post a 6% fall in computer chip sales.

The best performing industrial groups were: Internet (9.87%), Software and computers (3.17%) and Business training (3.03%).

Treasury yields flat

Front month West Texas crude futures are nudging higher by 0.14% to the $100.82/barrel mark on the NYMEX.

US 10-year bond yields are flat at 2.59%.

S&P 500 – Risers
Chipotle Mexican Grill Inc. (CMG) $502.32 +14.41%
Google Inc. (GOOG) $1,006.67 +13.26%
First Solar Inc. (FSLR) $49.87 +8.48%
Baker Hughes Inc. (BHI) $55.54 +7.26%
Amazon.Com Inc. (AMZN) $330.99 +6.51%
Ingersoll Rand Ltd. (IR) $67.04 +5.54%
Parker-Hannifin Corp. (PH) $112.13 +4.97%
General Electric Co. (GE) $25.70 +4.15%
Kansas City Southern (KSU) $117.61 +3.93%
Pioneer Natural Resources Co. (PXD) $224.00 +3.81%

S&P 500 – Fallers
People’s United Financial Inc. (PBCT) $14.26 -5.39%
Interpublic Group of Companies Inc. (IPG) $15.98 -5.39%
Tyson Foods Inc. (TSN) $28.33 -4.84%
Intuitive Surgical Inc. (ISRG) $380.09 -4.77%
J.C. Penney Co. Inc. (JCP) $7.02 -4.48%
CIGNA Corp. (CI) $74.59 -3.73%
Unitedhealth Group Inc. (UNH) $68.79 -3.61%
WellPoint Inc. (WLP) $85.89 -3.05%
Lowe’s Companies Inc. (LOW) $47.64 -2.82%
Honeywell International Inc. (HON) $84.30 -2.81%

Dow Jones I.A – Risers
General Electric Co. (GE) $25.70 +4.15%
Caterpillar Inc. (CAT) $87.57 +2.00%
Nike Inc. (NKE) $75.67 +1.52%
Verizon Communications Inc. (VZ) $49.61 +1.45%
Cisco Systems Inc. (CSCO) $23.10 +1.40%
Pfizer Inc. (PFE) $30.59 +1.09%
AT&T Inc. (T) $34.81 +1.09%
Walt Disney Co. (DIS) $67.13 +1.07%
Visa Inc. (V) $200.23 +0.98%
Travelers Company Inc. (TRV) $86.65 +0.73%

Dow Jones I.A – Fallers
Home Depot Inc. (HD) $74.98 -1.00%
Merck & Co. Inc. (MRK) $46.73 -0.81%
International Business Machines Corp. (IBM) $173.51 -0.76%
Johnson & Johnson (JNJ) $91.33 -0.69%
United Technologies Corp. (UTX) $107.69 -0.31%
Goldman Sachs Group Inc. (GS) $157.84 -0.30%
Procter & Gamble Co. (PG) $79.19 -0.29%
Intel Corp. (INTC) $23.85 -0.28%
JP Morgan Chase & Co. (JPM) $54.07 -0.26%
Coca-Cola Co. (KO) $38.48 -0.18%

Nasdaq 100 – Risers
Google Inc. (GOOG) $1,006.67 +13.26%
Baidu Inc. (BIDU) $164.30 +6.81%
Amazon.Com Inc. (AMZN) $330.99 +6.51%
Facebook Inc. (FB) $54.23 +3.87%
Green Mountain Coffee Roasters Inc. (GMCR) $64.55 +3.83%
Sears Holdings Corp. (SHLD) $56.24 +3.19%
Liberty Interactive Corp (LINTA) $27.01 +2.58%
Priceline.Com Inc. (PCLN) $1,053.46 +2.06%
Check Point Software Technologies Ltd. (CHKP) $58.73 +2.01%
Seagate Technology Plc (STX) $49.38 +1.90%

Nasdaq 100 – Fallers
Intuitive Surgical Inc. (ISRG) $380.09 -4.77%
Mylan Inc. (MYL) $38.71 -2.52%
Alexion Pharmaceuticals Inc. (ALXN) $108.55 -2.02%
Regeneron Pharmaceuticals Inc. (REGN) $302.08 -1.88%
Biogen Idec Inc. (BIIB) $242.88 -1.71%
Activision Blizzard Inc. (ATVI) $17.31 -1.60%
O’Reilly Automotive Inc. (ORLY) $133.34 -1.37%
Amgen Inc. (AMGN) $114.28 -1.36%
eBay Inc. (EBAY) $50.71 -1.30%
Nuance Communications Inc. (NUAN) $17.11 -1.21%


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