Oct. 17 - Summary: Investors send the S&P 500 to a lifetime high hours after the government reopens; Google reports results; Goldman brings out the knife; Verizon customers spending more; Lenovo eyes BlackBerry -WSJ. Conway G. Gittens reports.
Wall Street says thank you Washington - sending the S&P 500 to a record high. Now Wall Street can get back to the business of watching big business, or can it? The next potential throw-down is only 90 days away, says Chris Krueger of Guggenheim Partners. SOUNDBITE: CHRIS KRUEGER, ANALYST, GUGGENHEIM PARTNERS (ENGLISH) SAYING: "The focus on the next fight probably won't be Obamacare to the extent that it was this time, but it's not to say it won't still be out there. Things like the sequester are going to be a big source of contention along with revenues and entitlement reform." Investors will cross that bridge when they get to it. The S&P 500 set a lifetime closing high at 17-33. The Dow was not so lucky thanks to a surprising drop in revenues at IBM. After the bell, Google says its main business of paid clicks rose 26 percent last quarter, though the average cost paid by advertisers was down by single digits. Investors liked the results at first glance. Other notable earnings: Goldman Sachs used cost cutting to offset a plunge in revenues. Third quarter results show Goldman was hurt even more by the bond trading slump than rivals Citigroup, Bank of America, and JPMorgan Chase. Subscriber growth at Verizon was weaker than expected, but existing wireless customers had bigger cell phone bills. The numbers out of Verizon suggest that T-Mobile is coming on strong and gaining market shares even from the No. 1 U.S. mobile service provider. Shares of Verizon closed at a two-month high and T-Mobile investors bid that stock up as well. BlackBerry has another suitor. According to the Wall Street Journal, China's Lenovo is taking a look at BlackBerry's books and has signed an agreement not to reveal what it sees. That's a sign Lenovo might make a go for BlackBerry. The struggling device maker already has a near $5 billion offer from Fairfax Financial Holdings. And there's a little bit of economic action to hold you until the government starts releasing data again. Business activity in the Mid-Atlantic states expanded at a slightly slower pace this month. Stocks were little changed in Europe - with investors glad the U.S. has backed away from the brink of a feared default.