US stocks rise as earnings beat estimates
Strong earnings reports from Google (NASDAQ:GOOG) and General Electric (NYSE:GE) helped lift US stocks, which continued their upward momentum. Stocks were also supported after China’s economic growth accelerated at its fastest pace this year, according to quarterly GDP data from the National Bureau of Statistics.
Google soared 13.8 percent to surpass $1,000 a share for the first time. The owner of the world’s leading search engine posted stellar third quarter earnings, topping analysts’ expectations. The company said net revenues rose at an annualized rate of 5 percent to reach $11.92 billion, beating expectations for $11.7 billion. Google’s earnings per share reached $10.74, compared to expectations for $10.34.
Meanwhile, General Electric witnessed a boost in demand for industrial products, sending share prices 3.53 percent higher. The company’s share prices have expanded more than 15.6 percent year-to-date.
The Standard & Poor’s 500 jumped 0.65 percent, helping to extend its record to 1,744.50. The benchmark index has advanced 2.3 percent in the last five days, its biggest weekly gain since July. In total, eight of the ten industries on the S&P 500 registered gains, led by technology and telecommunications.
The Dow Jones Industrial Average gained 28 points to 15,399.70 after 19 of its 30 members reported gains. After General Electric, Verizon Communications (NYSE:VM) posted the biggest rally (2.27 percent), followed by Caterpillar Inc (NYSE:CAT) (1.9 percent). Strong technology stocks helped accelerate the NASDAQ’s earnings by 51 points, sending the index to 3,914.28.
Analysts have raised their third quarter earnings expectations for S&P 500 companies from 1.4 percent to 2.5 percent, according to data compiled by Bloomberg.
Next week promises to be an active one for US stocks. In addition to several earnings reports, the Labor Department will release its September jobs report, which was originally scheduled for October 4. Although markets will use the report to determine whether the Federal Reserve will taper asset purchases this year, Chicago Fed President Charles Evans said Thursday the central bank should avoid shifting gear until it reviews the delayed data reports.
Sorry. No data so far.