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Nasdaq 6,253.81 61.92
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Market Update

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


Author: Nichole Harper
ticker.com
Last Update: 1:52 PM ET July 17 2015

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.

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.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc