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Overnight Markets: Wall Street surges on stimulus hopes
by Himanshu Singh on Oct 30, 2013 at 05:19
US stocks advanced on Tuesday, with the Dow Jones and S&P 500 ending at record highs, as earnings from Pfizer Inc. to Xylem Inc. beat estimates and economic data supported views that the Federal Reserve would keep its stimulus intact for several months.
The Dow Jones industrial average jumped 111 points, or 0.72%, to end at 15,680, a record close. The Standard & Poor's 500 Index rose 10 points, or 0.56%, to finish at 1,772, also a record closing high. The Nasdaq Composite Index advanced 12 points, or 0.31%, to close at 3,952.
IBM jumped 2.7%, giving the biggest boost to the Dow, after the company's board of directors approved another $15 billion for stock buybacks.
In the latest economic data, a gauge of US consumer spending increased in September, but another report showed consumer confidence declined sharply in October because of worries about the impact of the partial government shutdown. The figures added to evidence of sluggish economic growth just as the Fed began a two-day policy meeting.
On the negative side, Apple (AAPL.O) shares dropped 2.5% a day after the iPad and iPhone maker delivered disappointing results.
After the bell, shares of LinkedIn (LNKD.N) fell 3.1% after the social networking company for recruiters and job seekers gave a conservative revenue forecast for the fourth quarter and fiscal 2013.
Shares of video game publisher Electronic Arts Inc (EA.O) rose 2.8% in extended-hours trading after the company reported a higher quarterly profit.
Pfizer Inc (PFE.N) rose 1.7% after the largest US drugmaker reported better-than-expected third-quarter earnings.
Cummins Inc (CMI.N) slumped 5.2% after the US maker of engines and other vehicle components reported lower-than-expected quarterly profit on Tuesday and cut its full-year outlook.
JP Morgan Chase (JPM.N) was another decliner, down 0.1%, after a report that the preliminary $13 billion deal set by the bank's chief executive and the US attorney general has hit a stumbling block.
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