Dow Jones: 12,479.73 (+42.61) SP 500: 1,316.15 (+7.28) Nasdaq: 2,789.80 (+27.13):GOOGLE'S BLOWOUT quarter led the Nasdaq higher yesterday but mounting uncertainty about the US government's ability to reach a debt-reduction deal may keep investors at bay in the coming week.
The gains were a bright spot in a stretch dominated by selling that pushed the SP 500 down in its worst week in five.
Worries about US and European government debt troubles put pressure on the market even as investors expect a batch of strong earnings next week.
For the week the SP 500 ended down 2.1 per cent, while the Dow lost 1.4 per cent and the Nasdaq fell 2.5 percent.
“We’re drifting and waiting for clarity on all these different issues,” said Fred Dickson, chief market strategist at DA Davidson Co in Lake Oswego, Oregon. “Each day, the deck chairs get slightly rearranged.”
Google’s earnings beat the most bullish forecasts late on Thursday, driving its stock up 13 per cent to $597.62, making it the top gainer in the Nasdaq 100. The SP information technology index rose 1.6 per cent.
The Dow Jones industrial average rose 42.61 points, or 0.34 per cent, to end at 12,479.73. The Standard Poor’s 500 index gained 7.27 points, or 0.56 per cent, to finish at 1,316.14.
The Nasdaq Composite Index advanced 27.13 points, or 0.98 per cent, to close at 2,789.80.
Energy was a big mover on BHP Billiton’s $12 billion offer to purchase Petrohawk. Shares of Petrohawk jumped 62.5 per cent to $38.17. The Select Sector Energy SPDR Fund, an exchange-traded fund, rose 2.6 per cent to $76.86.
Consumer discretionary stocks were among the biggest drags after US consumer sentiment hit its lowest level since March 2009. Home Depot fell 0.1 per cent to $35.91.
Investor Carl Icahn’s offer to buy Clorox for $10.2 billion pushed the consumer products company’s stock up 8.9 per cent to $74.55.
Citigroup posted higher net income, helped by falling credit losses. But the stock dropped 1.6 per cent to close at $38.38.
Volume was light, with about 7.12 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year’s daily average of 8.47 billion. – (Reuters)
