Wall Street rose on Friday, as investors weighed better-than-expected earnings from tech giant Google, conglomerate General Electric and investment bank Morgan Stanley.
After the bell on Thursday, Google Inc. (NASDAQ: GOOG) soared past earnings expectations after the tech giant reported fiscal third-quarter earnings excluding items of $10.74 a share on revenue of $14.89 billion. Shares of Google skyrocketed over 12 percent on Friday to top $1,000 a share for the first time ever.
In morning trading, Google shares jumped 12.69 percent to $1,001.60.
On Friday, General Electric Company (NYSE: GE) said fiscal third-quarter net income fell to $3.19 billion, or 31 cents per share, compared with $3.49 billion, or 33 cents per share, in the year-ago quarter. Excluding items, the company posted earnings of 36 cents a share on revenue of $35.7 billion.
Analysts polled by Reuters had expected the company to report earnings excluding items of 35 cents a share on $35.96 billion in revenue.
“Our third-quarter results were very strong in an improving global business environment,” said GE Chairman and CEO Jeff Immelt. “Orders grew 19% with orders growth around the world. Total segment profit grew 12%, Industrial margins grew 120 basis points in the quarter, and we are on track for planned margin expansion of 70 basis points for the year. GE Capital continues to perform well, and we finished the quarter with a Tier 1 common ratio of 11.3%, up 116 basis points.”
On Friday, shares of General Electric rose 2.19 percent to $25.22 in morning trading, despite missing on revenue estimates, as the company reported a record backlog level.
Morgan Stanley (NYSE: MS) beat Wall Street estimates and saw a 50 percent rise in earnings after the bank reported fiscal third-quarter net income of $888 million, or 44 cents per share, on Friday. Excluding items, the investment bank earned 50 cents a share on revenue of $7.9 billion.
Wall Street had expected Morgan Stanley to issue earnings excluding items of 40 cents a share on $7.7 billion in revenue, according to analysts polled by Reuters.
“Overall, our stronger year-over-year revenues and net income reflect the progress we have made to position the firm well for the future,” said James P. Gorman, chairman and chief executive Officer. “Our strategy to combine a world-class investment bank with the stability of the largest U.S. wealth management franchise and strong investment management is enabling us to deliver exceptional advice and execution for our clients as well as stronger returns for our shareholders. Overall, our stronger year-over-year revenues and net income reflect the progress we have made to position the firm well for the future.”
Shares of Morgan Stanley rose 1.87 percent to $29.47 in morning trading.
Looking ahead to next week’s earnings calendar, Microsoft Corporation (NASDAQ: MSFT), Ford Motor Company (NYSE: F), AT&T Inc. (NYSE: T), Caterpillar Inc. (NYSE: CAT), Amazon.com Inc. (NASDAQ: AMZN) are among the notable companies reporting quarterly results.
The Dow Jones industrial average fell 25.14 points, or 0.16 percent, to 15,346.51. The S&P 500 Index rose 4 points, or 0.23 percent, to 1,737.13. The Nasdaq Composite gained 29.42 points, or 0.76 percent, to 3,892.70.