Nasdaq, S&P end at multi-year highs

NEW YORK (CNNMoney.com) -- The Nasdaq composite surged to its highest point in nearly six years Wednesday, after Dell's upbeat earnings helped spark a rally in technology.

But the blue-chip averages meandered the day before Thanksgiving, with investors distressed by a slump in GM shares on news that one of its major shareholders has substantially cut its stake in the automaker.

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The Nasdaq composite (up 11.14 to 2,465.98, Charts) added almost 0.5 percent ending at its highest point since February 2001.

The Dow Jones industrial average (up 5.36 to 12,326.95, Charts) ended the session just above unchanged. The blue-chip barometer briefly hit a record trading high of 12,360.52 in the first minutes of trade, before retreating.

The broader S&P 500 (up 3.28 to 1,406.09, Charts) index added 0.2 percent and closed at a six-year high.

Stocks seesawed throughout most of the session Thursday before finding momentum in the last hour or two, thanks to Dell and a bouncing technology sector.

Trade was volatile Wednesday, due to lower-than-usual attendance on Wall Street, with many market participants ducking out early ahead of Thanksgiving.

Those that stayed through the session found plenty to focus on, including lower oil prices, Dell's earnings, Alcoa's restructuring, and news that one of GM's biggest shareholders has reduced its stake in the company.

All financial markets are closed Thursday for the holiday, and close early Friday, in what is expected to be a quiet session.

No economic news is expected Friday, and no S&P 500 companies are scheduled to report earnings.

Instead, the focus will likely be early reports on so-called Black Friday, the day after Thanksgiving - typically seen as the start of the crucial holiday retail sales period.

Consumer spending is likely to remain in focus next week, 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.

General Motors (down $1.52 to $31.09, Charts), a Dow component, lost about 4.7 percent on news that billionaire investor Kirk Kerkorian's Tracinda Corp. has sold 14 million shares earlier this week, cutting 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.

Meanwhile, MGM (up $5.21 to $54.21, Charts) rallied 10.6 percent on news that Tracinda Corp. plans to up its stake in the casino operator to 61.7 percent from 56.3 percent.

Dell (up $2.31 to $27.13, 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 9.3 percent Wednesday and gave a boost to the broader technology sector.

Brocade Communications (up $0.92 to $9.41, Charts) rallied 10.8 percent after reporting higher quarterly earnings 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 $1.24 to $30.43, Charts) climbed 4.3 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 $0.16 to $44.38, Charts) shares were little changed.

Market breadth was mixed and volume was moderate. On the New York Stock Exchange, winners beat losers 3 to 2 on volume of almost 1.34 billion shares. On the Nasdaq, decliners and advancers were about even on volume of 1.59 billion shares.

U.S. light crude oil for January delivery slipped 93 cents to settle at $59.24 a barrel on the New York Mercantile Exchange, following the release of the weekly oil inventories report.

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

COMEX gold rose 30 cents to settle at $629 an ounce.

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