U.S. Short Term Accord Lifts Market Sentiment for Now, Earnings in Focus

Nichole Harper
17 Oct, 2013
New York City

U.S. indexes steadily climbed into positive zone as investors shifted focus to domestic earnings from political fracturing in Republican Party. Verizon net soared 40% and estimated growth to continue. Goldman Sachs commodities revenues declined. IBM plunged on revenue fall.

[R]1:10 PM New York – U.S. indexes steadily climbed into positive zone as investors shifted focus to domestic earnings from political fracturing in Republican Party. Verizon net soared 40% and estimated growth to continue. Goldman Sachs commodities revenues declined. IBM plunged on revenue fall.[/R]

U.S. averted debt default after a last minute agreement among lawmakers reopened the government and revised debt ceiling.

However, the current political malaise is likely to resurface in late January as the agreement funds the government until mid-January and increases debt limit till February 7.

S&P 500 index increased 4.46 or 0.26% to 1,726 and Nasdaq Composite Index gained 11.63 or 0.3% to 3,851. 06.

In London trading, FTSE 100 index slid 0.2% or 13.84 to 6,556 and in Frankfurt the DAX index dropped 0.6% or 55.58 to 8,790. In Paris, CAC 40 index fell 0.5% or 20.57 to 4,223.

U.S. Stocks in Review









U.S. Stocks in Review

American Express ((AXP)) gained 4% to $79.15 said worldwide card spending increased 7.3% to $236.2 billion.

Total revenue in the third-quarter ending in September jumped 6% to $8.30 billion. Net income in the quarter climbed 9% to $1.37 billion or $1.25 a diluted share compared to $1.24 billion or $1.09.

EBay Inc ((EBAY)) dropped 4% to $51.75 and the online marketplace operator said fourth-quarter sales will be between $4.5 billion and $4.6 billion. The company also estimated lower than expected profit in the quarter.

Goldman Sachs ((GS)) dropped 2.4% to $158.48 and the financial firm said earnings were unchanged and revenues declined 20%. Goldman also increased dividend by 10%.

IBM ((IBM)) plunged 6% to $176.83 after the technology company said third-quarter revenues declined 4% to $23.7 billion, lower than expected by analysts.

Newmont Mining ((NEM)) advanced 4% to $26.95 after gold price rebounded 3% on speculation the Fed may delay stimulus tapering to next year.

Peabody Energy Corp ((BTU)) soared 7% to $19.04 after the largest coal miner in the U.S. reported a surprise third-quarter net profit on coal price recovery in the period and lower mining costs.

SanDisk ((SNDK)) plunged 8% to $67.999 after the storage chip maker reported adjusted third-quarter earnings of $1.59 a share and sales increased to $1.63 billion.

Verizon Communications Inc ((VZ)) increased 3% to $48.65 after the second-largest wireless carrier reported better than expected earnings.