S&P at all-time high as debt ceiling crisis passes

NEW YORK - The Standard & Poor's 500 index hit an all-time high Thursday as Wall Street put the government shutdown and debt-ceiling crisis behind it and focused on corporate earnings.

The S&P 500 rose 11.61 points, or 0.7 percent, to close at 1,733.15. Nine of the 10 industry groups in the index finished higher, with technology the only group that fell.

The Dow Jones industrial average ended the day down 2.18 points, or 0.01 percent, to 15,371.65. The index of 30 big U.S. companies was held back by declines in IBM and Goldman Sachs. Other indexes also posted noticeable gains.

The Nasdaq composite closed up 23.71 points, or 0.6 percent, to 3,863.15. The Russell 2000 index, made up primarily of smaller, riskier companies, also hit an all-time high, closing up 9.85 points, or 0.9 percent, to 1,102.27.

The market rose throughout the day as investors got back to focusing on earnings and economic data. American Express and Verizon rose the most in the Dow after reporting earnings that beat analysts' expectations.

Verizon rose $1.65, or 4 percent, to $48.90. The telecommunications company earned an adjusted 77 cents per share for the recent quarter, beating expectations of analysts.

IBM's third-quarter revenue fell and missed Wall Street's forecast by more than $1 billion. The stock closed down $11.90, or 6 percent, at $174.80. Earlier, it touched its lowest level of the last year, $172.57.

Goldman Sachs also weighed down the Dow. The investment bank's revenue fell sharply as trading in bonds and other securities slowed. Goldman fell $3.93, or 2.4 percent, to $158.32.

The focus on earnings was a change of pace for Wall Street, which had been absorbed in Washington's political drama over the last month. Now that the United States has avoided the possibility of default, at least for a few months, earnings news is expected to dominate trading for the next couple of weeks.

Only 79 companies in the S&P 500 have reported third-quarter results, according to S&P Capital IQ. Analysts expect earnings at those companies to increase 3.3 percent over the same period a year ago.

"I don't think we can completely close the door on the debt-ceiling chapter just yet, but we can get back to the stuff that really matters," said Jonathan Corpina, who manages trading on the floor of the New York Stock Exchange for Meridian Equity Partners.

Market analysts think the 16-day partial shutdown of the government caused billions of dollars of damage to the economy. Government employees were furloughed, contracts were delayed, and tourism declined at national parks. Analysts at Wells Fargo said the shutdown likely lowered economic growth by 0.5 of a percentage point.