Google soars past $1,000 taking S&P 500 to new high
NEW YORK CITY (AFP) — Google’s strong earnings sent its shares rocketing past the $1,000 mark Friday, taking the S&P 500 to a new all-time high and giving the Nasdaq a 1.3 per cent gain.
But earnings disappointments continued to weigh down the Dow, which barely managed a gain for the day.
The S&P 500 finished with a gain of 11.35 points (0.65 per cent) at 1,744.50.
The Dow Jones Industrial Average put on 28.00 (0.18 per cent) at 15,399.65.
The Nasdaq Composite — which includes Google — jumped 51.13 (1.32 per cent) to 3,914.28, its highest level since September 2000.
Google shares shot up 13.8 per cent to $1,011.41 after the dominant online search and ads company reported a 36 percent jump in its third-quarter net profit to $2.97 billion, or $8.75 a share. Revenues also beat forecasts with a 12 per cent jump year-on-year.
Analysts said the performance demonstrated Google’s ability to earn from mobile platforms, particularly its own Android operating system.
“We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device,” Google chief Larry Page told analysts.
Google’s success pulled fellow Internet giants with it: Facebook (+3.9 per cent), Amazon (+5.8 per cent) and Yahoo (+2.1 per cent).
On the sagging Dow, General Electric was a standout, gaining 3.5 per cent after it beat forecasts in its third-quarter earnings.
The US industrial group reported a 9 per cent fall in earnings, mainly due to the downsizing of its financing arm GE Capital. But operating earnings came in at 36 cents per share, one cent more than analysts had expected.
Still, falls by United Health (-3.7 per cent) and Home Depot (-1.4 per cent) held back the Dow 30.
Mexican-food chain Chipotle meanwhile put on 16.1 per cent after impressing investors with an 18 per cent revenue rise for the third quarter and a 6.2 per cent gain in same-store sales.
Bond prices were flat after two days of strong gains. The 10-year Treasury yield held at 2.59 per cent from late Thursday, while the 30-year was at 3.66 per cent.
Bond prices and yields move inversely.
