Techs take lead

Nasdaq composite finds momentum in late trade, with Dell's upbeat earnings providing the catalyst; blue chips wobble as investors consider weakness in GM.

By Alexandra Twin, CNNMoney.com senior writer

NEW YORK (CNNMoney.com) -- Tech stocks took the lead late in the session Wednesday, with Dell's strong earnings report helping to lift the Nasdaq composite to within reach of a 6-year record.

But blue chips couldn't find momentum, as investors contended with a big slide in GM following news that one of its major shareholders has shed stock.

HOT STOCKS
FED FOCUS
ECONOMY

The Nasdaq composite (up 11.05 to 2,465.89, Charts) added about 0.5 percent, with about 45 minutes left in the session. The tech-fueled index was on track to end the session at the highest point since February 2001.

The Dow Jones industrial average (up 0.64 to 12,322.23, Charts) was little changed. The broader S&P 500 (up 2.45 to 1,405.26, Charts) index added 0.2 percent, after ending the previous session at a six-year high.

Stocks seesawed throughout the session, as investors reacted to falling oil prices and the day's corporate news, including Dell's earnings, Alcoa's restructuring, and news that one of GM's biggest shareholders has reduced its stake in the company.

Stocks were expected to remain volatile throughout the close, due to lower-than-usual volume, with many Wall Street professionals checking out early ahead of Thursday's Thanksgiving holiday.

All financial markets are closed Thursday for the holiday, and close early Friday.

The week after the holiday will return the market's focus to the pace of the economy and consumer spending, said Art Hogan, chief market analyst at Jefferies & Co.

"Next week, we'll be talking about Black Friday, all the Wal-Mart promotions and how many people turned out," Hogan said, referring to the day after Thanksgiving, which is typically seen as the start of the crucial holiday retail sales period.

GM, Dell and other movers

General Motors (down $1.53 to $31.08, Charts), a Dow component, lost about 5.5 percent on news that billionaire investor Kirk Kerkorian's Tracinda Corp. has cut its stake in the automaker to 7.4 percent from 9.9 percent.

GM shares have been sliding all week on concerns that the investment firm might cut its stake, after a moratorium was lifted that had prevented Tracinda from trading the automaker's shares for 45 days.

Dell (up $2.44 to $27.26, Charts) reported higher quarterly earnings late Tuesday that topped estimates on revenue that was just short of estimates. Earnings were initially expected last week, but were delayed because of an accounting probe.

Dell shares jumped nearly 10 percent Wednesday and gave a boost to the broader technology sector.

Brocade Communications (up $0.85 to $9.34, Charts) rallied almost 10 percent after reporting higher quarterly earning and sales late Tuesday that topped estimates. The computer data storage provider also issued a bullish current-quarter earnings and sales forecast.

Dow component Alcoa (up $1.31 to $30.50, Charts) climbed 4.5 percent Wednesday. Late Tuesday, the aluminum maker said it would cut its work force by about 10 percent, and spin off one of its businesses as part of a broader restructuring.

Merck was dealt a court victory Wednesday afternoon when a federal judge denied a motion that would have allowed class-action status for injury and death cases involving Vioxx, the company's withdrawn painkiller. Merck (up $0.12 to $44.34, Charts) shares were little changed.

Among other movers, MGM (up $5.02 to $54.02, Charts) rallied 9.6 percent on news that Tracinda Corp. plans to up its stake in the casino operator to 61.7 percent from 56.3 percent.

U.S. light crude oil for January delivery slipped 90 cents to $59.27 a barrel on the New York Mercantile Exchange, following the release of the weekly oil inventories report.

Market breadth was mixed and volume was moderate. On the New York Stock Exchange, winners beat losers 3 to 2 on volume of 1.09 billion shares. On the Nasdaq, decliners and advancers were narrowly mixed on volume of 1.32 billion shares.

Investors also kept an eye on the day's economic news.

Weekly jobless claims rose by a greater-than-expected 12,000 last week to 321,000. However, the report still showed a healthy labor market.

The November consumer sentiment index from the University of Michigan was revised downward to 92.1 from an initial read of 92.3. Economists surveyed by Briefing.com thought it would rise to 93.

Treasury bond prices inched higher, with the yield on the 10-year note falling to 4.56 percent from 4.57 percent late Tuesday. Treasury prices and yields move in opposite directions.

COMEX gold rose 30 cents to $629 an ounce.


Rally rolls on. But watch out come January

Democratic Congress: winners and losers

More on investing Top of page

YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.