U.S. stocks finished the week strong, with weekly gain of more than two percent for the Dow and S&P, and three percent for the Nasdaq. Bobbi Rebell reports.
Strong earnings from a trio of tech titans and China's interest rate cut powered stocks higher for a second straight day. The S&P 500 is back in the black for the year, and the Nasdaq catapulted past 5,000. For the week- major gains on all the big indexes- the Nasdaq up three percent. Argus Research's Peter Canelo says the S&P has more room to rally. SOUNDBITE: PETER CANELO, CHIEF INVESTMENT STRATEGIST, ARGUS RESEARCH (ENGLISH) SAYING: "I think, it's about seven or eight percent below fair value at this time. So, if we get back to the highs, I believe, we'd be very close to fair value. But, historically, the market doesn't top out until it gets to roughly ten percent above fair value. So, I think the market can continue to do well into the new year." Strong demand for cloud computing helped Amazon post a surprise profit for the second straight quarter and propel Microsoft's slightly higher profit past estimates. Net income surged at the company formerly known as Google, Alphabet also surprised Wall Street by announcing its first share buyback. Pandora shares got crushed. The music streaming company's quarterly loss widened because its costs to acquire content nearly doubled. Investors cheered Jack's give back. Twitter CEO Jack Dorsey says he'll give $200 million worth of his Twitter stock to the employee stock pool. In Europe, the Chinese rate cut boosted export-driven stocks. Shares rose to a two-month high.