The Standard & Poor’s 500 Index rose 2.4 percent to 1,744.50 over the five days amidst the news that three big tech-related companies i.e. Google, Facebook and Twitter all have shown success this week on Wall Street. This is the biggest weekly gain since July. Similarly, the Dow Jones Industrial Average advanced 162.54 points, or 1.1 percent, to 15,399.65.
However, the Dow Jones, the 30-stock gauge is still 1.8 percent below its record reached in September 18 this year. On the other hand, the Nasdaq Composite Index jumped 3.2 percent to 3,914.28, the highest level since September 2000. The rise in stocks can also be attributed to Congress’ deal to end the budget standoff and raising the debt ceiling.
Google, Facebook the Top Performers
The S&P 500 surge is attributed to the better performance of Google Inc. this week which has been rallying in the S&P 500. Google stocks surged 16 percent and topped $1,000 for the first time after posting better-than-forecast earnings. On Thursday, its stock jumped to $1,012, a more than 14 percent ($120) increase, a huge gain from the previous record of $924.69 set on July 15.
Though Google has been blamed for collecting and selling consumers’ personal data, there does not seem any trouble for the company in the stock market. The company announced a $3 billion profit in the third quarter. According to some market observers the astounding growth is due to the fact that the company has gained 36 percent higher than in 2012 and above estimates.
Facebook is not only gaining new customers in large numbers, but also getting new customers who are willing to buy its shares as they rose $1.08, or 2.1%, to close Thursday at $52.21, a new all-time high. Earlier Evercore Partners on Tuesday had given an indication that it expects a price target of $60 on Facebook.
Facebook’s Instagram app is making great inroads and according to some estimates it could haul in $340 million in advertising revenue by 2014. The estimates from market observe tell that advertisers are expected to spend about 8.1%, or $9.5 billion, of digital ad budgets on social network advertising worldwide.
On the other hand, the New York Stock Exchange said Friday it would allow trading firms to conduct a dry run of their systems to prepare for Twitter’s IPO.
To contact the reporter of this story: Jonathan Millet at email@example.com