U.S. stock rally lifts S&P 500 to record

NEW YORK (MarketWatch) — U.S. stocks finished another week of gains with the S&P 500 index at a record high after earnings from large technology companies Microsoft Corp. and Amazon.com Inc. wowed investors with revenue growth.

"It's a fine stock market if you just look at earnings, interest rates and price-earnings ratios," said Hugh Johnson, chairman of Hugh Johnson Advisors LLC.

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Relatively low interest-rate levels that allow for higher-priced-earnings ratios is among the drivers taking equities higher, Johnson added.

The U.S. economy will be a focus when investors take a look at October numbers slated for release in the first week of November, said Johnson, who adds the market will also face potential headwinds from "uncertainty over what is Washington going to decide" in facing budget issues in the months ahead.

/quotes/zigman/20493/quotes/nls/msft MSFT 35.73, +2.01, +5.96% Microsoft Corp.

Pacing gains on the Dow Jones Industrial Average (DJIA) , Microsoft (MSFT) climbed 6%, a day after the software maker released results that illustrated a solid start to a large revamping of its business.

The Dow added 61.07 points, or 0.4%, to 15,570.28, its highest close since Sept. 19 and leaving it 1.1% ahead of last Friday's finish. Surpassing its record close set on Tuesday, the S&P 500 index (SPX) gained 7.70 points, or 0.4%, to 1,759.77, a 0.9% weekly rise. Both the Dow and S&P 500 rose for a third consecutive week.

The Nasdaq Composite (COMP) gained 14.40 points, or 0.4%, to 3,943.36, up 0.7% for the week, its second weekly gain.

Amazon.com's (AMZN) shares jumped 9.4% after the online retailer's strong third-quarter results signaled healthy momentum heading into the holiday shopping season.

United Parcel Service Inc. (UPS) advanced 1.2% after the shipping company reported third-quarter earnings that topped estimates.

For every three stocks falling more than four gained on the New York Stock Exchange, where 687 million shares traded. Composite volume cleared 3.1 billion.

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Equities slightly reduced their gains after CNBC and Bloomberg News reported Sen. Rand Paul was threatening to delay a Senate confirmation vote on President Barack's nomination of Janet Yellen to head the Federal Reserve. Bloomberg cited an aide in Paul's office as saying the senator was thinking of placing a hold on Yellen's nomination. The move would necessitate 60 votes would be needed in the Senate to move the nomination forward and could mean to several days of debate.

The move reportedly would come in a bid by Paul to obtain a Senate vote on a bill he proposed that would mandate regular public audits of the Fed's books.

"If he has a legitimate reason to dislike Janet Yellen and believes she's not qualified, then fine, tell us that. But if the purpose is to do a bargain, don't try to confuse the two," said Johnson, who added that the possible move would not have a material impact on the stock market unless it looks as though her confirmation wis in serious trouble .

The U.S. dollar (DXY) held steady against the currencies of major trading partners.

Shutterstock.com Crude oil prices rises, but stay below $100 a barrel.

Turning higher, gold prices (GCZ3) were up $2.20, or 0.2%, at $1,352.50 an ounce on the New York Mercantile Exchange, and the cost of crude oil (CLZ3) climbed 74 cents, or 0.8%, to $97.85 a barrel, with prices down for a third week in a row.

The yield on the 10-year Treasury note (10_YEAR) , used in figuring mortgage rates and other consumer loans, fell 2 basis points to 2.506%.

Durable goods climbed in September as demand for jetliners countered a decline in business equipment.

The Thomson Reuters/University of Michigan consumer sentiment gauge for October fell to 73.2, down from the initial read of 75.2 and down from 77.5 in September.

"It's the weakest number of the year and was led by declines both in the current conditions component and the outlook. Apparently those being surveyed weren't encouraged by the government reopening and/or don't own stocks," Peter Boockvar, chief market analyst at the Lindsey Group wrote in emailed comments.

Another report, this one delayed by the government shutdown, had U.S. wholesale inventories rising 0.5% in August and wholesale sales up 0.6%.