The Nasdaq on
Monday closed above 5,000 for the first time since the year 2000 dot-com
bubble as tech stocks were boosted by deals, while the S&P 500 and
Dow indexes hit records after economic data pointed to a slowly
accelerating economy.
After oscillating around it for much of the day, the Nasdaq composite index .IXIC
gained steam in the late afternoon to finish firmly above the
milestone, marking the third time the index ended above 5,000. The last
time was March 10, 2000.
Its biggest driver on Monday was Google Inc (GOOG.O) and it was boosted heavily by chipmakers NXP Semiconductors NV (NXPI.O) and Intel Corp (INTC.O), as well as network equipment maker Cisco Systems Inc (CSCO.O) after news of two big deals.
Shares of NXP rose 17.3 percent to $99.56 after it agreed to buy smaller peer Freescale Semiconductor Ltd (FSL.N) to create a company valued over $40 billion. Freescale rose 11.8 percent to $40.36.
Hewlett-Packard Co (HPQ.N) said it would buy Wi-Fi gear maker Aruba Networks Inc (ARUN.O) for about $2.7 billion, the biggest deal for the world's No. 2 PC maker since 2011. Rival Cisco rose 2.3 percent to $30.19. U.S. consumer spending fell for a second month
in January, with lower gasoline prices dampening inflation pressure
while personal income fell short, showing a rise of
0.3 percent.
Separate gauges of manufacturing conflicted, as financial data firm Markit's final U.S. Manufacturing Purchasing Managers' Index hit a four-month high while a reading from the Institute for Supply Management fell to its lowest in 13 months.
The Dow Jones industrial average .DJI rose 155.93 points, or 0.86 percent, to 18,288.63, the S&P 500 .SPX gained 12.89 points, or 0.61 percent, to 2,117.39 and the Nasdaq Composite .IXIC added 44.57 points, or 0.9 percent, to 5,008.10.
"Money is continuing to pour into the market because of low interest rates, and although stocks are somewhat expensive they're not overly expensive," said Stephen Massocca, chief investment officer at Wedbush Equity Management LLC in San Francisco.
Lumber Liquidators (LL.N) plunged 25 percent to $38.83 after a news report said its products failed to meet safety standards, allegations the hardwood flooring retailer denied.
NYSE advancers outnumbered decliners 1,851 to 1,214, for a 1.52-to-1 ratio; on the Nasdaq, 1,792 issues rose and 960 fell, for a 1.87-to-1 ratio.
The S&P 500 posted 57 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 144 new highs and 32 new lows.
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| Traders work on the floor of the New York Stock Exchange February 24, 2015. |
Its biggest driver on Monday was Google Inc (GOOG.O) and it was boosted heavily by chipmakers NXP Semiconductors NV (NXPI.O) and Intel Corp (INTC.O), as well as network equipment maker Cisco Systems Inc (CSCO.O) after news of two big deals.
Shares of NXP rose 17.3 percent to $99.56 after it agreed to buy smaller peer Freescale Semiconductor Ltd (FSL.N) to create a company valued over $40 billion. Freescale rose 11.8 percent to $40.36.
Separate gauges of manufacturing conflicted, as financial data firm Markit's final U.S. Manufacturing Purchasing Managers' Index hit a four-month high while a reading from the Institute for Supply Management fell to its lowest in 13 months.
The Dow Jones industrial average .DJI rose 155.93 points, or 0.86 percent, to 18,288.63, the S&P 500 .SPX gained 12.89 points, or 0.61 percent, to 2,117.39 and the Nasdaq Composite .IXIC added 44.57 points, or 0.9 percent, to 5,008.10.
"Money is continuing to pour into the market because of low interest rates, and although stocks are somewhat expensive they're not overly expensive," said Stephen Massocca, chief investment officer at Wedbush Equity Management LLC in San Francisco.
Lumber Liquidators (LL.N) plunged 25 percent to $38.83 after a news report said its products failed to meet safety standards, allegations the hardwood flooring retailer denied.
NYSE advancers outnumbered decliners 1,851 to 1,214, for a 1.52-to-1 ratio; on the Nasdaq, 1,792 issues rose and 960 fell, for a 1.87-to-1 ratio.
The S&P 500 posted 57 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 144 new highs and 32 new lows.
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