US stocks end high on tech gains (1) May 15, 2009
Posted by dhirendra1972 in Biggest Lifts, Bit of Correction, Brief Pullback, Lack of Broad Conviction, Lower Market, Sustainable Gains.Tags: Bank of America-Merrill Lynch, Broad Conviction, Coca-Cola Company, Consumer Staples, Defensive Stocks, Financial Shares, Gains, Healthcare, Jobless Claims, Merck & Co Inc, Nasdaq Composite Index, Novellus Systems, PHLX Semiconductor, Possible Indication, Pullback, Rally, Semi-conductor Companies, Standard & Poor 500 Index, Technology Gains, Technology Shares, US Markets, Volume
add a comment
Good morning friends. There is this gains in financials and technology. It’s striking and they likely lead the market lower, having underpinned its run-up since March.
Stocks rose on Thursday as investors returned to financial and technology shares on bets the recent rally could have more room to grow after a brief pullback. Volume, however, was light, a possible indication of a lack of broad conviction.
Technology gains were led by big-cap tech and semiconductor companies after five straight days of losses for the PHLX Semiconductor index Apple Inc was among the top boosts on Nasdaq, rising 2.9 percent to $122.95, while the PHLX index climbed 3.2 percent.
The surge in US markets over the past two months has made investors who missed the rally anxious to get back into stocks, analysts said. “We’ve had a bit of a correction over the last couple days and people may be going in there and adding a bit, which makes the gains sustainable,” said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia, Pennsylvania.
Defensive stocks such as consumer staples and healthcare also gave a lift, underscoring some of the lingering worry about the economy following a report that showed a jump in weekly jobless claims. Coca-Cola Co was among the Dow’s biggest lifts, up 2.9 percent at $44.90, and Merck & Co Inc added 1.5 percent to $26.05.
The Dow Jones industrial average added 46.43 points, or 0.56 percent, to 8,331.32. The Standard & Poor’s 500 Index gained 9.15 points, or 1.04 percent, to 893.07. The Nasdaq Composite Index climbed 25.02 points, or 1.50 percent, to 1,689.21.
The gains in financials and technology were striking, coming shortly after some analysts said the very same sectors would likely lead the market lower, having underpinned its run-up since March.
Shares of semiconductor companies got a lift after Bank of America-Merrill Lynch raised its rating and price target on shares of Novellus Systems citing cost cutting and attractive valuations. Novellus, which provides equipment to the semiconductor industry, rose 7.1 percent to $16.88. – The Economic Times
