Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a710442
Overnight Markets: US fiscal deal lifts S&P 500 to record
by Himanshu Singh on Oct 18, 2013 at 04:44
Wall Street gained on Thursday, with the Standard & Poor’s 500 Index surging to a record, as investor confidence grew following a last-minute deal to avoid a US default.
The S&P 500 rose 11 points, or 0.66%, at 1,733. The Nasdaq Composite Index was up 24 points, or 0.62%, at 3,863. However, the Dow Jones industrial average was down four points, or 0.03%, at 15,370 in response to weaker-than-expected results from heavyweights IBM and Goldman Sachs.
Congress approved an 11th-hour deal on Wednesday to end a partial government shutdown and increase US borrowing authority, pulling the US back from a possible default on its debt.
Economic data showed, the number of Americans filing new claims for unemployment benefits dropped from a six-month high last week but remained elevated as California continued to deal with a backlog related to computer problems.
The pace of manufacturing growth in the US mid-Atlantic region slowed slightly in October, but firms' optimism about the future hit a 10-year high, the Philadelphia Federal Reserve Bank said.
In corporate news, Verizon Communications Inc (VZ.N), the largest US mobile operator, rose 3.5% after the company posted stronger-than-expected third-quarter earnings and revenue.
Chipotle Mexican Grill (CMG.N) reported a 15% jump in quarterly profit after the closing bell. Chipotle shares were up 7.1% in extended-hours trading.
Technology shares showed a loss as IBM led the decline. IBM (IBM.N) shares hit a two-year low a day after reporting weaker-than-expected revenue.
Earnings released after the market's close by Google (GOOG.O) boosted its shares 6.9% in extended-hours trading. Google said consolidated revenue increased 12%.
Goldman Sachs (GS.N) shares fell 2.4% after the fifth-largest US bank by assets said third-quarter revenue plunged 20%, hurt by weak mortgage and bond-trading results.
News sponsored by: