Upbeat Earnings News Leads To Strength On Wall Street - U.S. Commentary
(RTTNews.com) - With traders reacting positively to some upbeat earnings news, stocks have moved mostly higher during trading on Friday. The gains on the day have extended a recent upward trend by the markets, with the S&P 500 reaching a new record high.
In recent trading, the Nasdaq and the S&P 500 have moved roughly sideways, hovering firmly in positive territory. The Nasdaq is up 30.98 points or 0.8 percent at 3,894.13, while the S&P 500 is up 6.39 points or 0.4 percent at 1,739.54.
Meanwhile, the Dow is underperforming its counterparts once again, with the blue chip index down 14.52 points or 0.1 percent at 15,357.13. Notable losses by Home Depot (HD) and Merck (MRK) are weighing on the Dow.
The strength in the broader markets comes as the resolution of the latest fiscal crisis in Washington has allowed traders to pay more attention to the earnings news from big-name companies.
Shares of Google (GOOG) have jumped by 12.1 percent after the tech giant reported better than expected third quarter results.
General Electric (GE) and Morgan Stanley (MS) are also posting notable gains after reporting third quarter earnings that beat analyst estimates.
Traders also seem to be expressing relief after lawmakers reached an agreement to reopen the government and raise the debt ceiling.
While the temporary nature of the extension could lead to another protracted fight in a few months, the markets are currently enjoying the brief respite.
Positive sentiment has also been generated by a report from the Chinese National Bureau of Statistics showing that Chinese GDP saw a faster rate of growth in the third quarter.
The report said China's third quarter GDP rose 7.8 percent year-over-year, in line with estimates and faster than the 7.5 percent growth in the second quarter.
With Google helping to lead the way higher, considerable strength is visible among internet stocks. The NYSE Arca Internet Index has surged up by 2 percent to its best intraday level since 2000.
Baidu (BIDU) and Amazon (AMZN) are posting strong gains along with Google, advancing by 5.3 percent and 4.1 percent, respectively.
Oil service stocks have also moved sharply on the day, driving the Philadelphia Oil Service Index up by 1.9 percent. The gain has lifted the index to a two-month closing high.
Within the oil service sector, Baker Hughes (BHI) has surged up by 7.7 percent after reporting better than expected third quarter results.
Railroad and electronic storage stocks are also seeing significant strength on the day, while notable weakness has emerged among health insurance and biotech stocks.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher on Friday, although Japan's Nikkei 225 Index bucked the uptrend and dipped by 0.2 percent. Hong Kong's Hang Seng Index jumped by 1.1 percent, while Australia's All Ordinaries Index advanced by 0.7 percent.
The major European markets also moved to the upside on the day. While the French CAC 40 Index climbed by 1.1 percent, the U.K.'s FTSE 100 Index and the German DAX Index rose by 0.7 percent and 0.6 percent, respectively.
In the bond market, treasuries continue to a lack of direction after moving notably higher in the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by less than a basis point at 2.585 percent.
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