Stocks up on new Google service
Investors cheered moves by Google and credit card companies Wednesday and sent the stock market to a solid gain. Google helped set off a surge in technology stocks after it unveiled a lowcost wireless phone service.
Google’s new wireless service, dubbed “Project Fi,” costs around $20 a month for basic service and charges customers for the amount of data they use. The low-cost plan puts the Internet search giant into competition with AT&T and Verizon Wireless. Google’s stock gained $6.25, or 1%, to $549.18.
McDonald’s said a strong dollar and restructuring charges weighed on its firstquarter results as a new CEO tried to turn around the hamburger chain. The company’s sales continued to fall in the quarter, but its earnings beat Wall Street’s estimates. McDonald’s gained $2.97, or 3%, to $97.84.
The S&P 500 index rose 10.67 points, or 0.5%, to 2,107.96. That’s just 10 points shy of its record high reached March 2. The Dow Jones industrial average was up 88.68 points, or 0.5%, to 18,038.27, and the Nasdaq composite picked up 21.07 points, or 0.4%, to 5,035.17.
Visa and MasterCard surged following news that China plans to allow foreign companies to handle bankcard transactions. Visa’s stock jumped $2.66, or 4%, to $68.01, while MasterCard rose $3.43, also 4%, to $91.20.
Among big companies posting quarterly results, Boeing reported higher profit and revenue. But the aircraft maker’s sales missed estimates, and costs climbed for its 787 Dreamliner. Boeing dropped $2.14, or 1%, to $151.19.
Major markets finished mixed in Europe. France’s CAC 40 rose 0.4%, while Germany’s DAX dropped 0.6%. Britain’s FTSE 100 fell 0.5%.
In Asia, Japan’s benchmark Nikkei 225 rose 1.1% to finish at 20,133, the first time since April 14, 2000, that the index closed above 20,000. South Korea’s Kospi was little changed. Hong Kong’s Hang Seng gained 0.3% and China’s Shanghai Composite jumped 2.4%.
Back in the U.S., government bond prices fell, driving the yield on the 10-year Treasury note up to 1.98% from 1.91% late Tuesday.