Stocks turning in their best week of the year riding a wave of strong corporate earnings. Bobbi Rebell reports.
Stocks turning in their best week of the year riding a wave of strong corporate earnings. Nearly 70 percent of companies have beaten Wall Street's forecasts this earnings season. For the week, the Dow, the Nasdaq and S&P 500 all finishing strong. Procter & Gamble warned that a stronger dollar would hurt results in the current quarter. But its shares rallied after the consumer products giant said it will split off its Duracell battery business into a separate company. Ford's shares skidded. Its profit fell by a third due to the cost of launching its new F-150 pickup truck. But its results beat the Street. And John Krafcik, president of the auto pricing information site, TrueCar, is bullish about the prospects for automakers. (SOUNDBITE) JOHN KRAFCIK, PRESIDENT, TRUECAR, (ENGLISH) SAYING: "If you look at Ford, GM, and FiatChrysler, the group formerly known as the Detroit Big 3, roughly 70 percent of their mix is truck, crossover, or pickup truck. The margins there are pretty good, and I think we are seeing that good news flowing forward into the fourth quarter." The markets showed more love for Microsoft after the software developer's revenue beat the consensus- in large part on strength in their cloud business. The Microsoft bounce helped offset the steep drop in Amazon. The online retailer shocked Wall Street not only losing even more money than expected - but also with a disappointing forecast for sales in the holiday quarter. Amazon was the biggest drag on the S&P 500. Pandora's stock singing an ugly tune- it fell dramatically after the Internet radio service added fewer listeners than expected. It was the top loser on the New York Stock Exchange. Mixed news on the economics front. New home sales inched up last month to a six-year high. But August's sales pace was revised sharply downward, indicating the tentative nature of the housing recovery. In Europe, shares fell after weak results from chemicals maker BASF and luxury goods group Kering. Concerns over the Ebola virus also weighed on stocks.