- Title: USA: Technology shares boost S&P 500 to record
- Date: 25th October 2013
- Summary: INTERNET (FILE) (REUTERS) (MUTE) VARIOUS OF TWITTER PAGE
- Embargoed: 9th November 2013 12:00
- Location: Bosnia and Herzegovina
- Country: Bosnia and Herzegovina
- Topics: General
- Reuters ID: LVAEDSO8O7O76LAV3P7VLMEK6VEJ
- Story Text: The S&P 500 ended at another record high on Friday (October 25), boosted by gains in technology shares after strong results from Microsoft and Amazon.com.
They were the latest to offer some upbeat news on the earnings season, which has been mixed overall, especially on the revenue side where the percentage of companies beating analysts' expectations has been below the long-term average.
Microsoft gave the biggest boost to all three major indexes, while Amazon.com also helped the S&P 500 and Nasdaq. Microsoft shares jumped 6 percent at $35.73 (USD), a day after it reported profit and revenue above analysts' expectations.
Amazon.com shares rose as high as $368.40, a record, after the online retailer reported stronger-than-expected sales growth. Shares ended up 9.4 percent at $363.39.
The S&P 500 technology index rose 0.4 percent for the day.
The Dow Jones industrial average <.DJI> was up 61.07 points, or 0.39 percent, at 15,570.28. The Standard & Poor's 500 Index <.SPX> ended up 7.70 points, or 0.44 percent, at 1,759.77, and hit an intraday record high of 1,759.82 late in the session.
The Nasdaq Composite Index <.IXIC> was up 14.40 points, or 0.37 percent, at 3,943.36.
Indexes also posted gains for the week. The Dow rose 1.1 percent, the S&P 500 gained 0.9 percent and Nasdaq increased 0.7 percent.
Also, seeking to avoid a repeat of Facebook Inc's much-maligned public debut, Twitter Inc revealed more modest ambitions, saying its initial offering would raise up to $1.6 billion (USD) and value the company at up to about $11 billion.
The valuation was more conservative than the $15 billion some analysts had expected for the social media phenomenon, potentially attracting investors who might consider the money-losing company's listing price a better deal, with room to rise.
Twitter had signaled for weeks it would price its IPO modestly to avoid the sort of stock plummet that spoiled Facebook's coming-out party. It said on Thursday it intends to sell 70 million shares between $17 and $20 apiece, raking in up to $1.4 billion for the company.
Twitter and its underwriters begin a two-week road show to woo investors next Monday in New York, with stops in Boston and the mid-Atlantic region before touching down in Chicago, San Francisco, Los Angeles and Denver, according to a source familiar with the offering.
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