Stock Market News for October 18, 2010 - Market News

With fresh worries about the lurking foreclosure crisis keeping sentiments jittery, investors saw a bright spot in Google’s earnings and sent broader indices higher on a mixed day on Wall Street. In one single session, Google’s market capitalization soared by $19 billion as the technology company’s quarterly earnings triumphed expectations.

On the financial side, it was a different story, however. Shares in Bank of America (NYSE:BAC) plunged to their year-low and Wells Fargo (NYSE:WFC) fell 5%. JP Morgan Chase & Co. (NYSE:JPM) slid 4.1% and Citigroup (NYSE:C) dropped 4.5%. S&P lowered Bank of America to “Hold” from “Strong Buy”. However, American Express (NYSE:AXP), which reports its results on Thursday, saw its shares rising 2.9% on the week.

Google’s earnings took most technology companies higher, sending the Nasdaq up more than 1%, even as the Dow average failed to register an advance. Strength in technology stocks also lifted the broader S&P 500 index. Google shares surged 11% to cross the $600 threshold as the company appeared to be gaining momentum in areas beyond online search. Its shares closed at $601.45, its highest level since January.

The Dow average dropped nearly 32 points, or 0.3%, to 11062.78. The tech-oriented Nasdaq Composite index gained almost 34 points, or 1.4%, to 2468.77. The broader S&P 500-stock index edged up 2.38 points, or 0.2%, to 1176.19. On the New York Stock Exchange, declining issues beat those that rose in price by a three-to-two margin. Volume rose to 1.4 billion shares.

General Electric (NYSE:GE) led the Dow average lower after reporting weaker-than-expected revenues. The company said wind turbine, railroad locomotives and other heavy equipment areas witnessed weakness.

This week sees a number of heavyweights from the financial and industrials releasing their interims. Results are due from Goldman Sachs (NYSE:GS), on Tuesday and Morgan Stanley’s (NYSE:MS), on Wednesday. Caterpillar (NYSE:CAT) reports on Thursday, with numbers from United Technologies (NYSE:UTX) and Honeywell (NYSE:HON) due on Friday.

Apple (NASDAQ:AAPL) comes out with its quarterly numbers after the close of markets today. Clearly, given apprehensions that it would have run too far, investors would look to justify the recent run in the company’s stock price and a possible association with Verizon (NYSE:VZ). Also due out today, IBM (NYSE:IBM) is expected to post earnings of $2.75 up from $2.40 a year earlier.

On Friday, Ben Bernanke yet again assured markets that the second round of quantitative easing is possible. The Fed Chairman noted, “The Committee’s actions are contingent on incoming information about the economic outlook and financial conditions.” Investors would therefore peruse Wednesday’s release of the Fed’s Beige Book of anecdotal regional economic activity for further rationale on Fed easing plans.

Stock Market News for October 18, 2010 – Market News

SIGN UP TO NEWSLETTER

Free E-Book

Recent Posts