Feverish investors push Google over $500

Techs gave the stock market something to cheer about today.

Shares of Google (GOOG, news, msgs) jumped past the $500-per-share mile mark for the first time today.

And, after the market close, Dell (DELL, news, msgs) shares were soaring after the company's third-quarter earnings beat analyst estimates.

Google was the big star when its shares closed up nearly 3% at $509.65. The stock's gain gives the Internet company a market capitalization of more than $155 billion -- more than other big-name technology companies like Apple Computer (AAPL, news, msgs), Yahoo! (YHOO, news, msgs) and IBM (IBM, news, msgs).

Google is now the second-most valuable company in Silicon Valley -- behind only networking giant Cisco Systems (CSCO, news, msgs). It also has the 23rd-largest market capitalization in the world -- right behind Swiss pharmaceutical giant Roche Holding (RHHBY, news, msgs).

Today, the Internet firm joined an even more select club. It is one of just 10 companies with market caps above $100 million whose shares trade at $500 or more. It has the second-largest market cap of the group at more than $155 billion, behind Warren Buffett’s Berkshire Hathaway (BRK.A, news, msgs), with $165.3 billion.

Google trades at 57 times projected 2007 earnings, which makes the shares fairly pricey. But Standard & Poor's analyst Scott Kessler said many investors simply don't care. "A lot of people feel not only that they will lose out, but they will feel and look stupid" if they do not own the shares, he told the Financial Times.

But there's a risk to the herd mentality pushing this stock, analyst Youssef Squali of Jeffries & Co. told the newspaper. "At the first sign of weakness, investors will be running for the hills," he said.

Google shares are up 22% for the year and 26% for the third quarter. That's in stark contrast to the company's closest competitor, Yahoo!, which is down nearly 31% on the year.

Google went public in August 2004 at $85 per share and closed at $100 on the day. It crossed $200 by the following January topped $400 for the first time on Nov. 18, 2005.

• Video on MSN Money: Is Google a buy?

Dell shares jump as earnings beat estimates

Shares of computer giant Dell soared as much as 11% in after-hours trading after the company reported better-than-expected third-quarter earnings.

Dell said it earned 30 cents a share, 6 cents better than analysts had forecast but down from 39 cents a year ago. Revenue was $14.4 billion, below analyst estimates but up slightly from a year ago.

Dell's results were delayed almost a week as the company dealt with a Securities and Exchange Commission investigation into some of its past accounting methods. Dell also said the results "are subject to change to reflect any necessary corrections or adjustments, or changes in accounting estimates," as a result of ongoing investigations.

Dell was trading at $27.02 in after-hours trading, up 8.9% from a regular close of $24.82.

Oil prices rise ahead of supply data

The major averages came face to face with a crude oil rally. Crude won, closing above $60 on the day at $60.17, up $1.37 a barrel, and the Dow Jones industrials finished up only a few points.

Crude rallied because analysts expect a drawdown in U.S. fuel stocks ahead of the winter months.

Analysts expect data out tomorrow to show that U.S. crude stocks rose for the fourth week but that gasoline and distillate supplies fell for a sixth week.

Crude oil loadings were halted yesterday in Valdez, Alaska, due to poor weather, helping boost the price of oil. Oil has dropped 24% from reaching highs in July of $78.40 a barrel.

Meanwhile, the Dow closed up five points on the day to nearly 12,322. Most of the gain was due to a 2.5% gain in aluminum giant Alcoa (AA, news, msgs) and a 2.5% gain for Boeing (BA, news, msgs), which announced a deal to sell 25 planes to Korean Air. Boeing briefly hit an all-time intraday high of $91.90 this afternoon.

The blue-chip index was held back by a 4.6% decline in General Motors (GM, news, msgs). There was no hard news to account for the decline.

The Nasdaq Composite was basically unchanged at 2,453, and the Standard & Poor's 500 Index was up 2 points at just under 1,403.

• Video on MSN Money: The market's been relatively flat in the last week. Is the Santa Claus rally done?

A bidding war for Delta?

As travelers prepare to flood the nation's airports for the Thanksgiving holiday, the airlines themselves are bracing for big changes.

All the airlines are trying to figure out their moves in the wake of US Airways Group's (LCC, news, msgs) $8 billion bid for troubled Delta Air Lines (DALRQ, news, msgs).

Southwest (LUV, news, msgs) CEO Gary Kelly told The Wall Street Journal he would be interested in picking up some of the assets that would probably come onto the market if US Airways succeeded in winning Delta.

United Airlines parent UAL (UAUA, news, msgs) reportedly is looking into buying some of the assets, as is Continental Airlines (CAL, news, msgs), CNBC's Phil LeBeau said today.

Continental, in fact, said it would consider merging with another carrier in order to remain competitive, Reuters reported today. "The creation of a competitor even larger than American Airlines would not be good for us in the long run," CEO Larry Kellner said in a statement. "Our preference is to remain independent and continue our growth plan."

Continental and UAL were both more than 4% today. American Airlines parent AMR (AMR, news, msgs) was up 2%. Delta itself added 1.4%, and Southwest was up 1%.

Mattel recalls Polly Pocket play sets

Toy maker Mattel (MAT, news, msgs) is pulling 4.4 million Polly Pocket magnetic play sets from the shelves, after three children were hospitalized.

The Consumer Product Safety Commission reported that the children swallowed tiny magnets that fell off the toys.

The Polly Pocket play set has plastic dolls with accessories that have magnets measuring 1/8-inch in diameter.

The stock slipped 1% to $23.09 today.

Earnings update: Nordstrom, Deere, Medtronic

Shares of high-end retailer Nordstrom (JWN, news, msgs) were up 4.5% today after the company said it earned $135.7 million, or 52 cents per share, in the third quarter, up 26% from a year ago. Analysts had expected 51 cents per share.

The upscale department store chain said sales of women's clothing rose after several difficult quarters, helping boost same-store sales 11%.

The company raised its full-year earnings forecast to between $2.46 and $2.51 per share. Its earlier projection was between $2.31 to $2.39 per share.

• MSN Money columnist Robert Walberg explains why Nordstrom's results are so good.

Farm equipment maker Deere (DE, news, msgs) shares climbed 6.6% on heavy volume even though it said its business will soften next year. The farm equipment giant said it earned $277 million, or $1.20 per share, up 19% from a year ago. The consensus estimate was for 94 cents per share.

The company said sales unexpectedly rose, helping boost profits, but said sales in the U.S. and Canada fell 6% for the quarter and expects softer sales in 2007.

Medical equipment maker Medtronic (MDT, news, msgs) soared 9.4% after it said profits fell from a year ago but sales jumped 11%. The company earned $681 million, or 59 cents a share, down from $817 million, or 67 cents a share, last year.

Medtronic cited higher costs for the profit decrease, but it said sales of its cardiac rhythm management devices -- its largest product line -- rose 6% to $1.36 billion. Sales of its heart defibrillators were up 4%, despite slowed growth in recent quarters.

Revenue was $3.08 billion, up from $2.77 billion a year ago. Analysts were expecting 56 cents per share and revenue of $2.97 billion.

JPMorgan Chase upgraded the stock today to overweight from neutral, citing expectations of a strong next 12 to 18 months.

New shoes for Mickey Mouse

Walt Disney (DIS, news, msgs) and Payless ShoeSource (PSS, news, msgs) are working together to develop a "direct-to-retail" line of footwear. The deal will create footwear styles with Disney and Disney's Pixar characters, and Payless will market and sell the shoes in its stores and online starting in 2007.

Payless has sold Disney-branded footwear for years, but this deal will allow the two companies to work more closely on design and retail marketing.

Meanwhile, The Wall Street Journal reported that cable operator Comcast (CMCSA, news, msgs) is close to a content deal with the media giant, which would let Comcast offer television hits like "Desperate Housewives" and "Lost" on its video-on-demand service.

The broader deal includes Comcast's purchase of Disney's broadcast and cable programming for more than $1 billion and gives Comcast rights to use Disney promotional content on its high-speed Internet portal, the paper said.

A deal could be announced today. Disney shares were up 0.3%.

iPhone on the way?

Apple Computer shares were up 2.5% today on talk that it could launch its iPhone in early next year.

Rumors over the expected debut of Apple's hybrid cell phone and iPod have caused a buzz in recent weeks, with fans hoping the company will roll it out at the Macworld conference in January.

-- Elizabeth Strott and Charley Blaine