This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Despite Washington, S&P Hits Another Record Closing High

NEW YORK (TheStreet) -- The S&P 500 Index set another record close amid speculation the Federal Reserve will stick with its equity-bolstering stimulus program in lieu of tepid economic data releases. Solid growth from China and strong domestic corporate earnings added to the view that stocks can extend the year's record gains.

The S&P 500 rose 0.7% to 1744.48, pushing the 2013 advance to 22%, its best performance to start a year since 1997. The Dow Jones Industrial Average gained a modest 0.18% to 15,399.26 while the Nasdaq surged 1.3% to 3914.28 as Google (GOOG) reported earnings that beat estimates catapulting the stock to more than $1,000 per share, the first technology stock to rise to a four-figure price.

For the 5-day trading week, the S&P rose 2.4%, its best week since the 5-day period ending July 12. The Dow added 1.1% and the Nasdaq increased 3.2% this week.

"Today and yesterday it's as if the budget [debt ceiling] was just a bad dream," John Manley, chief equity strategist at Wells Fargo who helps manage $222.1 billion in total assets, said in a phone interview. "The Fed's not going to taper right away, the market valuation at around 14.5 times is not overvalued and earnings are better than expected, even if not great." 

China's third-quarter gross domestic product rose to 7.8% in line with expectations, showing acceleration for the first time in three quarters, and helping to fuel gains in Asian equity markets.

While the U.S. debt ceiling has only been delayed until January, investors voiced confidence that ongoing monetary stimulus rather than politics would drive market sentiment. Chicago Fed President Charles Evans said Thursday that the central bank shouldn't start reducing the pace of bond buying due to disruption to economic data during the government shutdown. Dallas Fed President Richard Fisher added that political dysfunction in Washington supports the case for not tapering in the near term.

Several investors forecast the Federal Reserve may now not reduce its $85 billion-a-month bond-buying program until early next year.

"We are entering a period where we see the end of macro [concerns] where Europe, the Federal Reserve leadership and the debt ceiling all got resolved favorably," Scott Ranger, chief investment officer of Ranger Asset Management, said in a phone interview. "Now the market is more focused on earnings - GE was pretty good, Google was fantastic and large cap equities are not expensive." Ranger recently moved from Alliance Berstein where he managed $14 billion to start his own funds management firm.

Google closed up 13.8% to record an all-time closing high of $1,011.41 a share after the search engine giant posted third-quarter earnings of $10.74 a share, beating analyst expectations of $10.34 a share.  Restaurant chain Chipotle CMG was the top performer in the S&P 500 as shares soared 16.1% to $509.74 after third quarter profit rose 15% and net income climbed to $83.4 million from $72.3 million a year earlier, the company said yesterday. Intuitive Surgical ISRG was the worst performer in the S&P after the maker of da Vinci Surgical Systems reported third-quarter revenue missed expectations on lower sales of devices and related equipment. The Sunnyvale, Calif.-based company reported earnings of $3.99 a share on revenue of $499 million. Analysts polled by Bloomberg data were expecting $3.39 a share on $525.9 million. Shares lost 5.7% to $376.52.

Baker Hughes BHI, the world's third biggest oil services company, also beat profit expectations with strong drilling activity in the Middle East and Asia Pacific. Its shares added 7.3% to $55.55.

Morgan Stanley MS gained 2.6% to $29.69 after posting third quarter revenue of $8.1 billion, beating expectations of $7.66 billion.

General Electric GE added 3.5% to $25.55 after the company announced adjusted earnings per share of 36 cents, above expectations of 35 cents a share.

Gold settled down 0.63% to $1,314.6 while oil was up 0.44% to $101.11. Ten-year Treasuries were up 1/32 to dilute the yield to 2.589% while the U.S. dollar index was down 0.08%.

 --By Jane Searle and Joe Deaux in New York.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs