US stocks rose with the S&P 500 Index capping the best weekly gain from 2013 as companies like Microsoft Corp and Procter & Gamble Co. reported earnings.
Investors shook off concerns about New York’s first Ebola case, which had weighed on US stock futures.
According to Bloomberg, P&G gained 2.3% after reporting that it would split its Duracell battery business. Microsoft gained 2.5% as its quarterly sales topped the estimates on growth of cloud computing. SodaStream International Ltd. Gained 15% after reports that it is testing brands from PepsiCo Inc.
Amazon.com Inc. dropped 8.3% after posting the largest quarterly net loss since 2003.
Alpine Funds in Purchase portfolio manager, Mark Spellman said, “Earnings have been very good. A large part of this market rise since the decline has been on the idea the Fed will be here to protect you.”
According to Market Watch, the S&P 500 gained 0.7% or 13.76 points to 1,964.58 in New York. The equity rallied 4.1%, the highest in a week from January 2013, snapping back its four-week losing streak and bouncing back after dropping to the sixth-month intraday low in the volatile action of last week.
The Dow Jones Industrial Average rose 127.51 points of 0.8% or 127.51 points to 16, 805.41. The blue-chip barometer achieved a gain of 2.6% for the week. The Nasdaq Composite Index gained 0.75 or 30.92 points at 4,483.72. The tech-heavy Index rose 5.3% this week.
Investors are waiting for results of the European banks stress tests, which are expected on Sunday. The Federal Reserve policy meeting is around the corner, scheduled for next week. The week is expected to end the third round of its bond buying program, which was aimed at assisting the US economy.
IG chief market strategist Chris Weston said, “The central question then that traders will be asking assuming Ebola looks to be contained will be whether the Fed removes the “considerable period” for keeping the funds rate low.”
He added, “It’s likely the Fed will continue to see rates staying low for a considerable period of time and remain confident in its economic outlook, thus sending a message of confidence to the market.”
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