Google and Facebook Rally Leads Nasdaq to Record, World Stocks Advance

Nichole Harper
17 Jul, 2015
New York City

Tech stocks rallied and Google Inc pushed Nasdaq Composite index further into record zone. However, weakness in energy stocks on weaker oil price kept the S&P 500 index in check. General Electric gained on improving outlook for industrial manufacturing business.

[R]1:50 PM – Tech stocks rallied and Google Inc pushed Nasdaq Composite index further into record zone. However, weakness in energy stocks on weaker oil price kept the S&P 500 index in check. General Electric gained on improving outlook for industrial manufacturing business.[/R]

Tech stocks rallied for the second day in a row after Google Inc pushed the Nasdaq composite index further into record territory.

The index of consumer prices in June increased 0.3% from May. For the year, all item index before seasonal adjustment rose 0.1%., the Department of Labor said.

Housing starts in June soared 9.8% to 1,174,000 annual rate from the revised May estimate but surged 26.6% from a year ago month rate to 927,000, the Department of Commerce reported.

Housing permits in June jumped 7.4% from the revised May rate and climbed 30% from a year ago month rate to 1,033,000.

On Wall Street, Tollbooth Strategy Index jumped 1.1% or 125.81 to 11,016.73.

S&P 500 index slid 2.56 to 2,121.72 and the Nasdaq Composite Index rose 0.5% or 28.19 to 5,191.35.

Crude oil in New York fell 39 cents to $50.52 a barrel and gold declined $13.50 to $1,130.40 an ounce.

U.S. Movers

General Electric Company ((GE)) rose 14 cents to $27.18 after the diversified conglomerate reported total revenue in the second-quarter ending in June increased 2% to $32.75 billion from a year ago period.

Net in the quarter swung to a loss of $1.36 billion or 13 cents per diluted share compared to profit of $3.55 billion or 35 cents from the same quarter last year.

GE’s Industrial revenue in the quarter was flat at $26.9 billion and oil-and-gas equipment revenues declined 15% to $4.06 billion.

Google Inc ((GOOG)) surged 14.8% or $85.55 to $665.40 after the search engine services provider said revenue in the second-quarter ending in June soared 11% to $17.73 billion from a year ago period.

Net income in the quarter surged 17.3% to $3.93 billion or $4.93 per diluted share compared to $3.35 billion or $4.88 from the same quarter last year.

Google said revenues in advertising segment in the quarter jumped 11% to $16.02 billion and revenues in Google websites business soared 13% to $12.4 billion while revenues in network members'' websites increased 2% to $3.62 billion from a year ago.

Honeywell International Inc ((HON)) increased 1.9% or $2.04 to $105.61 after the aerospace products and services provider reported net sales in the second-quarter ending in June dropped 4.6% to $9.78 billion from a year ago period.

Net income in the quarter climbed 8.2% to $1.19 billion or $1.51 per diluted share compared to $1.10 million or $1.38 from the same quarter last year.

European Markets

Seasonally adjusted construction activities in May rose 0.3% in euro area but fell 0.3% in the EU28 region compared to a month ago. In April, activities in euro area slid 0.2% and 0.6% in the EU28, the Statistical Office of the European Communities said.

European markets closed lower and trimmed weekly gains and German lawmakers authorized government to negotiate a third bailout for Greece.

Lawmakers approved the authority by a 439-to-119 vote with 40 members abstaining from the process. But, nearly a fifth of Chancellor Merkel’s coalition voted ‘no’ for the proposal.

In London trading, FTSE 100 index fell 0.4% or 26.68 to 6,769.77 and in Frankfurt the DAX index decreased 0.5% or 57.17 to 11,659.59.

In Paris, CAC 40 index slid 7.41 to 5,114.09.

For the week, FTSE 100 index increased 1.5% and the DAX index jumped 3% and the CAC 40 index soared 4.3%.

888 Holdings Plc surged 11.3% to 178 pence after the online casino and poker gaming services provider agreed to acquire rival online gaming and entertainment company Bwin.party Digital Entertainment Plc for £898.3 million in cash and stock.

The shareholder of Bwin.party will receive 39.45 pence in cash and 0.404 new 888 shares.

Electrolux AB slipped 2.1% to 252.30 kronor after the Sweden-based household appliances maker reported net sales in the second-quarter ending in June soared 19.1% to 31.35 billion kronor from 26.33 billion kronor in a year ago period.

Net in the quarter swung to profit from a year ago to 608 million kronor compared to a loss of 92 million kronor and diluted earnings per share swung to 2.12 kronor from diluted loss per share of 0.32 kronor.

Ericsson jumped 4.1% to 89 kronor after the Sweden-based communications services provider reported net sales in the second-quarter ending in June climbed 11% to 60.7 billion kronor from 54.8 billion kronor in a year ago period.

Net profit in the quarter plunged 20% from a year ago to 2.1 billion kronor compared to 2.7 million kronor and diluted earnings per share slipped to 0.64 kronor from 0.79 kronor.

The company said revenues in networks segment''s sales jumped 8% to 31.2 billion kronor and global services revenues climbed 14% to 26.4 billion kronor from a year ago period.

Fortum Oyj plunged 7.3% to €15.93 after the Finland-based energy-related services provider said revenues in the first-half ending in June declined 12.4% to €1.83 billion from €2.09 billion in a year ago period.

Net profit in the period surged 85.9% from a yea ago to €4.89 billion compared to €2.63 billion and diluted earnings per share climbed to €5.38 from €2.81.

Asian Markets

Stocks in Tokyo extended weekly gains after euro zone markets stabilized and China reported better than expected second quarter economic growth and commodities prices remained under pressure.

The Nikkei 225 Stock Average rose 50.80 or 0.3% to 20,650.92 and the broader Topix index gained 2.11 to 1,662.94.

For the week, Nikkei 225 jumped 4.4%.

The yen closed at 123.97 against a dollar.

Sharp Corporation declined 3.5% to 166 yen after the Nikkei news said diversified company’s sales for the first-quarter ending in June of about 600 billion yen mainly due to weak business of liquid crystal displays for televisions.

Sharp estimated operating loss of about 35 billion yen compared to a 4.6 billion yen operating profit for the same period a year earlier.

The company said operating profit for the first-half period ending in September of about 10 billion yen, a 66% plunge on the year.

Sensex index in Mumbai traded higher and for the week the index gained 2.9% as investors focus on domestic earnings and the government announced more measures to streamline foreign direct investment.

Rupee strengthened 4 paisa to 63.47 against one U.S. dollar.

The Sensex Index rose 17.19 to close at 28,463.31. The CNX Nifty edged up 1.80 to 8,609.85.

For the week, Sensex Index and CNX Nifty climbed 2.9%.

Tata Motors plans to raise ₹4,400 crore through a non-convertible debentures offering. Crompton Greaves won a contract in Saudi Arabia.

MindTree agreed to acquire UK-based management consultancy.