U.S. stocks increased this the week, pushing the Standard & Poor’s 500 Index to a new record, as Congress reached a deal to end the budget lockdown and amid speculation over governemnt maintaining stimulus program.
The Standard & Poor’s 500 Index added 2.4% to 1,744.50 this week, for the biggest weekly gain since July. The Dow Jones Industrial Average advanced 162.54 points, or 1.1%, to 15,399.65. The benchmark average index is 1.8% below its record level of September 18. The tech stocks increased as Nasdaq Composite Index soared 3.2% to 3,914.28, the highest level in more than 12 years.
“We saw people locking in gains, we saw people paring their exposure to equities, we saw the winners and high-momentum stuff being sold,” said Jonah Cave, head of client trading and execution in the Americas at UBS AG. “After the deal, we then saw a swift reversal of that. It feels to me like were just going to continue on an extended march forward as broad participation moves back into equities.”
Investors are focused on upcoming data next week, as government reports delayed from the shutdown will begin to be released. The September U.S. jobs report will be issued on Oct. 22.
In corporate news, 70% of the companies which released earnings data, have topped analysts’ estimates while 55% have beaten revenue projections, according Bloomberg.
Google surged 16% and closed at record high of $1,011.41, breaking for the first time in companys history the $1000 barrier, amid optimism about new advertising for wireless devices and online video. The world’s largest search-engine company said profit grew as the number of promotions sold on mobile, video and other services made up for shrinking advertising prices.
Morgan Stanley added 6.2% to $29.69, the highest since February 2011, as equity-trading revenue jumped the most among the bank’s biggest peers and profitability at its brokerage unit, increased.
Bank of America Corp. gained 3.1% to $14.63. The second-largest U.S. lender said cost cuts as lower legal expenses and loan losses amid growing consumer and business banking profit helped earnings to increase.
General Electric Co. rose 4.7% to $25.55 after the company said that its industrial business would most likely meet a goal for profit-margin growth on demand for jet engines and locomotives.
UnitedHealth Group Inc. lost 7.4% to $68.76, recording the biggest weekly drop in more than two years, after the largest U.S. health insurers third-quarter sales failed to meet analysts’ estimates.