Strong earnings from Mondelez and Kellogg drove stocks higher on Wall Street. The three big indexes tallied their biggest gains since February. Fred Katayama reports.
Investors not spooked on the last trading day of October. Strong earnings consumer companies powered the S&P 500 higher on Tuesday. The indexes made big gains for the month. Templeton Emerging Markets executive chairman Mark Mobius sees the rally continuing. SOUNDBITE: MARK MOBIUS, EXECUTIVE CHAIRMAN, TEMPLETON EMERGING MARKETS, (ENGLISH) SAYING: "I think it looks like it'll keep on going. And mainly it's because of ETF activity. If you see the flows of money going into ETFs, and of course, the big ETFs of the U.S. market -straight index funds - where you have a situation like that, more and more money goes into the same stocks, and the index moves up." Leading the charge: Oreo maker Mondelez. The snack maker's quarterly profit catapulted higher, and revenue rose on strong demand for key brands like Oreo and Trident gum. Also ascending: Kellogg shares. The cereal maker's sales increased for the first time in more than two years. Qualcomm shares dropped, Sources say Apple could drop Qualcomm's chips in iPhones and iPads beginning next year. Analysts say chipmaker Intel would benefit the most if Apple switches vendors, and its stock shot to a 17-year high. Another sign of a tightening labor market: U.S. labor costs rose at its quickest year-on-year pace in 2-1/2 years in the third quarter. And consumer sentiment jumped to a nearly 17 year high in October. In Europe, a rally in tech and industrials stocks nudged the markets higher. Germany was closed for a holiday.