Nasdaq ends at near 6-year highTech-fueled average sees highest close since February 2001 as investors seek to build on recent advance.NEW YORK (CNNMoney.com) -- Tech stocks rallied Monday, pushing the Nasdaq composite to its highest close in nearly six years, as investors extended the recent rally and geared up for Tuesday's onslaught of economic and earnings news. The tech-fueled Nasdaq composite (up 16.66 to 2,406.38, Charts) added 0.7 percent, closing at its highest point since February 2001.
The Dow Jones industrial average (up 23.45 to 12,131.88, Charts) and the broader S&P 500 (up 3.52 to 1,384.42, Charts) index both added around 0.2 percent. Treasury prices eased, raising the corresponding yields. The dollar gained versus other major currencies. Oil and gold prices slipped. Stocks managed to gain Monday ahead of a busy week on Wall Street. That stocks were able to do this - considering the lack of news and catalysts - was a positive, said Art Hogan, chief market analyst at Jefferies & Co. He said that the week's relevant news "starts tomorrow [Tuesday] with retail sales, Home Depot, Wal-Mart, PPI and the ensuing debate over inflation." Home Depot (down $0.24 to $36.40, Charts), Wal-Mart Stores (down $0.15 to $46.32, Charts), Target (down $0.18 to $57.76, Charts) and a host of other retailers all report quarterly earnings before the start of trade Tuesday. Home Depot's report Tuesday will be of particular concern for investors, as it will be seen as something of a proxy for the slowing housing market, said John Forelli, portfolio manager at Independence Investments. After the close Monday, retailer Dillard's (up $0.55 to $47.48, Charts) reported improved quarterly earnings that topped estimates. Shares gained 8 percent in extended-hours trading. Also before the bell Tuesday, reports are due on October retail sales and the October producer price index (PPI). After the start of trade, the read on September business inventories is expected. Later in the week, reports are due on consumer prices (CPI), manufacturing and housing. The minutes from the October Federal Reserve policy meeting are due Wednesday. Investors are looking for further signs that the economy, though slowing, is not headed for a so-called "hard landing." In addition, participants continue to bet that the Federal Reserve will begin cutting rates some time in the first half of next year and will be looking for this week's reports to support such beliefs. In particular, a jump in the week's two inflation reports - the producer and consumer price indexes - might raise worries that the Fed won't be able to cut rates as soon as had been hoped. Such concerns could spark a stock selloff, particularly with the major gauges having risen so much lately. "In the near term, the market might be a bit overvalued and at risk for some choppiness," said Forelli. "But I think the pieces are in place that the market can keep rising through the end of the year." "The earnings have been very strong so far, and that should continue to be a support for the market," he added. Stocks were mixed Friday at the end of an otherwise upbeat week on Wall Street, as investors eyed bullish earnings, lower oil prices and news that the Democratic Party would now control Congress. During the week, the Dow Jones industrial average hit a fresh record closing high, while the Nasdaq and the S&P 500 hit almost 6-year highs. Among stock movers Monday, computer hardware and software led the technology gainers. Chipmakers were also buoyant. General Electric (up $0.19 to $35.36, Charts) and Intel (up $0.42 to $21.00, Charts) both rose after they were added to the Citigroup Recommended List. Other Dow gainers included General Motors (up $0.42 to $35.09, Charts), DuPont (up $0.55 to $47.48, Charts) and AIG (up $1.02 to $70.65, Charts). Isis Pharmaceuticals (up $2.05 to $12.43, Charts) jumped nearly 20 percent after two mid-stage trials showed its cholesterol-lowering drug worked well to cut LDL, or so-called "bad" cholesterol. KB Home (up $0.96 to $44.78, Charts) added 2.2 percent after the homebuilder said late Sunday that its CEO was leaving amid a probe into misdated stock option grants. Market breadth was positive and volume was moderate. On the New York Stock Exchange, winners beat losers by six to five on volume of 1.41 billion shares. On the Nasdaq, advancers beat decliners nearly three to two on volume of 1.76 billion shares. U.S. light crude oil for December delivery sank $1.01 to settle at $58.58 a barrel on the New York Mercantile Exchange. Treasury prices fell, raising the yield on the benchmark 10-year note to 4.61 percent from 4.59 percent late Friday. Bond prices and yields move in opposite directions. In currency trading, the dollar gained versus the yen and euro. COMEX gold fell $4.30 to settle at $625.80 an ounce. |
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