Nasdaq closes above 4,000 for first time in 13 years
Thursday, 28 November 2013 00:00
REUTERS: The Nasdaq composite index closed above 4,000 on Tuesday for the first time since 2000, while the Dow and S&P ended barely changed.
Retailers and homebuilders were among the best performing sectors, responding to stronger-than-expected earnings and robust housing market data.
Big-cap technology stocks helped the Nasdaq the most on Friday to finish above 4,000 for the first time since the dot-com bubble burst in 2000 and sent the tech-heavy index hurtling.
Tiffany & Co jumped 7% to $ 88.02 and was the S&P 500’s top performer after the luxury retailer’s third-quarter sales topped expectations. The S&P retail index advanced 0.9%.
“The wealth effect because the stock market has gone up has definitely helped the upper-end folks,” said Gary Bradshaw at Hodges Capital Management in Dallas, Texas.
Moreover, Bradshaw said gasoline prices were giving a potential boost to broad-based holiday spending. Wal-Mart Stores Inc shares rose 0.3% to close at an all-time high of $ 80.86 a day after the retailer named a new chief executive.
On the Nasdaq, Apple Inc gained 1.8% to $ 533.40, Google Inc rose 1.2% to $ 1,058.41 and Amazon.com Inc shares ended up 1.3% to $ 381.37.
The PHLX Housing Index rose 2.5% after stronger-than-expected figures on building permits for October and a steady rise in housing prices.
Permits for future US home construction hit a 5-1/2 year high and an index of single-family home prices notched big gains in September.
The Dow Jones industrial average ended up 0.26 point to 16072.80. The Standard & Poor’s 500 Index gained 0.27 point, or 0.01%, to 1,802.75. The Nasdaq Composite Index rose 23.18 points, or 0.58%, to 4,017.75.
The S&P 500 has risen nearly 27% this year, primarily bolstered by expectations the Federal Reserve’s stimulus will continue at least until the end of the year.
The Walt Disney Company led the Dow in percentage gain, with shares rising 2.1% to $ 71.18. The company announced better-than-expected earnings earlier in the month.
Trading is expected to remain light this week, with financial markets closed Thursday for the Thanksgiving holiday. Markets will also close early at 1 p.m. (1800 GMT) on Friday.