US stocks advance, S&P at new high

NEW YORK CITY: US stocks rose on Friday, with the SandP 500 striking a new record, on strong corporate earnings and expectations of continued loose monetary policy when the Federal Reserve meets next week.

The Dow Jones Industrial Average rose 61.07 (0.39 per cent) to 15,570.28.

The broad-based SandP 500 increased 7.70 (0.44 per cent) to 1,759.77, while the tech-rich Nasdaq Composite Index tacked on 14.40 (0.37 per cent) at 3,943.36.

Friday's gains were driven by better-than-expected earnings from Amazon and Microsoft and solid results from Procter and Gamble and UPS.

Microsoft rose 6.0 per cent after it bested analyst expectations, reporting a 17 per cent rise in profits to US$5.2 billion and pointing to progress in its transition to a "devices and services" company. The Dow component has come under scrutiny for its comparative weakness in mobile technology products.

Amazon jumped 9.4 per cent despite again reporting a loss, of US$41 million compared with US$274 million in the year-ago period. However, revenue surged 24 per cent to US$17.1 billion, above estimates.

But the two tech companies' gains did not extend to all of their rivals. Google fell 1.0 per cent, Apple dipped 1.1 per cent and Yahoo lost 2.5 per cent.

Dow component Boeing rose 1.7 per cent after announcing that it was launching a bid together with Lockheed Martin for a new US$55 billion US Air Force bomber program. Lockheed advanced 1.0 per cent.

The program aims to build between 80 and 100 new long-range stealthy bombers, a top priority as the US military seeks to replace its aging bomber fleet.

Dow component Procter and Gamble was off 0.8 per cent after earnings grew 8 per cent on higher sales. The company said growth in emerging markets remains fairly strong.

Global package-delivery giant UPS advanced 1.2 per cent after earnings of US$1.16 per share exceeded expectations by a penny, even as revenues slightly underperformed.

UPS plans to hire 55,000 seasonal employees to deliver packages during the holiday shopping season, which is compressed this year due to the late Thanksgiving holiday.

Eastman Chemical fell 5.2 per cent after projecting full-year earnings of US$6.30-US$6.40 per share, under the US$6.48 predicted by analysts. The company cited higher raw material costs, among other factors