Higher Retail Sales and Google Q3 Results Boost US Stock Markets

October 15 00:00 2011

NEW YORK, October15 (RainbowNewsLine.com) – A surge from strong retail sales coupled with Google’s Q3 earnings helped US stock indexes to break the trading range.

On late Thursday, internet search giant Google (NASDAQ: GOOG) reported 26% growth in3Q earnings and the stock was up by 5.8 percent to reach $591.68. Apple rose 3.3 percent to reach $422 due to its record-setting iPhone sales. Recent surge was significant as the Dow, the Nasdaq and the S&P’s 500 touched the tops of their recent trading ranges.

On Friday, the DOW rose by 166.36 pts., closed at 11,644.49, S&P 500 rose by 20.92 and touched 1,224.58 and NASDAQ was up by 47.61 to reach 2,667.85

Not only Indexes but other commodities, oil and energy stocks gained rapidly, for example, Exxon Mobil hopped 2.3% to get $78.11 and Chevron jumped 2.7% to reach $100.47.

The government reported an increase of 1.1% in September retail sales, which is double of what economists had expected, and the biggest gain in seven months. Retail sales act like a barometer to consumers spending which helps a nation’s economic growth. Household spending accounts for 70 percent of the US economy. If this spending falls sharply, a recession is more likely to happen. These positive figures also suggest that an US recession is not going to happen anytime soon.