The S&P 500 closed at a record high for the second straight day on Friday to cap its biggest weekly gain in three months as stronger-than-expected earnings from Google, Morgan Stanley and others overshadowed worry that earnings growth was faltering.
The reassuring signals on profitability augmented investors’ relief over the resolution earlier in the week of the budget impasse in Washington that had threatened to trigger a potentially catastrophic default on the U.S. debt.
The S&P 500 closed up 0.7 percent, while the Nasdaq rose 1.3 percent to finish at its highest since 2000. It was the largest daily gain for the Nasdaq in a week, Reuters reports.
Google Inc (GOOG.O) grabbed most of the spotlight, with its shares gaining 13.8 percent to clear the $1,000 mark for the first time, ending the session at $1011.41. Its rise came a day after the search engine company posted results that beat forecasts and helped lead the S&P technology sector to outperform all other sectors with a 1.8 percent rise.
“Washington and everything that happened with the budget talks has cleared out, and we are refocusing on earnings. We have companies coming in next week that you think would beat numbers or do …