12:40 PM New York – Tech heavy Nasdaq led the market indexes on Wall Street with a surge of 1.2%. Earnings dominated trading sentiment after Google and Microsoft reported better than expected earnings and IBM fell short of expectations.
U.S. stocks traded higher after a batch of positive earnings from tech companies and investors took comfort in G20 avoided a direct criticism of monetary stimulus in Japan.
The S&P 500 index increased 11.3 or 0.7% to 1,553 and the Dow Jones Industrial Average declined 9.4 or 0.1% to 14,528.
The weakness in IBM weighed on the Dow after the technology giant reported quarter earnings of $3 a share, missing the estimate of $3.05 a share and higher. IBM stock fell 6.5%.
The tech heavy Nasdaq gained 1.25% or 39.59 to 3,205.76 after Google and Microsoft reported better than expected earnings.
April gold futures increased 0.8% to $1,402.60 an ounce and May crude-oil futures increased 0.5% to $88.42.
European stocks inched higher Friday after resource stocks recovered and twenty nine banks are scheduled to repay early 10.94 billion euros of loans to the European Central Bank.
The FTSE 100 index in London rose 0.27% or 16.89 to 6,260.56 as commodities linked stocks rebounded. Vedanta Resources, Tullow Oil, Randgold and Anglo-American plc rose between 2% and 5%.
In Frankfurt, the DAX index fell 0.2% to 7,457.47 and the CAC 40 index in Paris gained the most, up 0.81% or 28.99 to 3,628.35.
Shares of GlaxoSmithKline, drug maker, fell 0.75 % in London after the Office of Fair Trading accused the firm of paying competitors to delay release of their own versions of GSK Seroxat treatment.
Stocks in Tokyo traded higher after G-20 ministers failed to criticize the Japan’s monetary easing.
The yen weakened to 98.69 against one dollar.
The Nikkei 225 Stock Average gained 96.41 or 0.7% to 13,316.48 and the broader Topix Index rose 3.70 to 1,126.67.
With the tacit approval of the latest Japanese monetary easing from the G20 ministers, market watchers expect additional gains in the Nikkei in the next two weeks and the expectations of better earnings remain high.
A draft statement to be released at the end of meeting in Washington today is expected to avoid direct criticism of the stimulus, Finance Minister Taro Aso said.
Market indexes in Hong Kong and Shanghai increased more than 2% after International Monetary Fund reiterated that China’s economy remains on track to grow 8% in the current year.
Stocks in Review
Shares of PepsiCo (PEP
) and Mondelez (MDLZ
) gained more than 2% after hostile investor Nelson Peltz has been increasing his stake in companies through his Trian Fund Management LP.
Investor Pelz increased revealed a stake worth $269 million in Pepsi and a stake in Mondelez.