Friday, October 23, 2015

Earnings Fuel a Big Bounce for the S&P

Positive earnings reports helped the S&P 500 finish at its highest close in two months yesterday. Reports from some tech giants buoyed the entire market, which finished up 1.7 percent on the day.

Alphabet Inc., the new name of Google's parent company, handily beat the Street's earnings estimates, on the way to boosting its share price by 12 percent. Similarly, better-than-expected earnings lifted Amazon shares by 10 percent. For the moment at least, Amazon’s stock was at a record high.

But it wasn't quite enough to lift the S&P out of correction territory. The S&P 500 fell 12.3 percent from its May and all-time high to its low in August. For the correction to end, it needed to finish above 2054, but it fell just short at 2052.

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