Stocks Up on Microsoft Earnings

Nasdaq, others jump on Countrywide optimism and possible rate cuts
By Kevin Spak,  Newser Staff
Posted Oct 26, 2007 3:42 PM CDT
The Nasdaq MarketSite, left, is shown in New York's Times Square in this Jan. 30, 2006, file photo. The Nasdaq rose today on strong earnings from Microsoft (AP Photo/Mark Lennihan, File)   (Associated Press)
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(Newser) – Optimism prevailed on Wall Street today as Microsoft clobbered estimates and Countrywide promised the worst was behind it. The tech-heavy Nasdaq led the way, gaining 53.33 to finish at 2,804.19. The S&P 500 rose 20.87 to 1,535.28; 65% of its components have beaten estimates so far. The Dow finished at 13,806.70, up 134.78 to wrap up a winning week.

Countrywide reported a staggering $1.2 billion loss but shot up 30.68% by forecasting a turnaround. “You've had bad news from financials for the last few weeks and then Countrywide comes out and says they can fix their business,” one analyst told Bloomberg, saying it raised hopes for the whole sector. Optimism likewise abounded that the Fed would cut rates again next week.