Stocks rise on DellNews of a management shakeup at the PC maker gives a boost to the broader tech sector.NEW YORK (CNNMoney.com) -- Stocks rose Thursday morning - sending the Dow industrials to a record trading high - as investors welcomed a mild reading from a key inflation indicator and upbeat company news from Dell and Exxon Mobil. The Dow Jones Industrial average (up 38.05 to 12,659.74, Charts) added 0.2 percent, pushing to a fresh all-time trading high. The broader S&P 500 (up 5.29 to 1,443.53, Charts) index added 0.4 percent and flirted with a fresh more than six-year high. The tech-heavy Nasdaq composite (up 17.45 to 2,481.38, Charts) added 0.6 percent. Stocks rallied Wednesday after the Federal Reserve opted to hold a key short-term interest rate steady at 5.25 percent, as expected, and implied in its statement that the economy is holding firm, while core inflation is moderating. That outlook seemed to be echoed by economic news released early Thursday morning, including reports that personal income and spending rose in December, in line with estimates. At the same time, the report's inflation component, the core PCE deflator, rose just 0.1 percent. (Full story) A separate report showed a bigger-than-expected decline in the number of Americans filing new claims for unemployment. But on the downside, the January ISM index, released later in the morning, showed a bigger-than-expected decline, falling to 49.3. A level below 50 is seen as meaning contraction in the sector. In corporate news, Dell (up $0.83 to $25.05, Charts) helped pace an early tech advance. The PC maker said late Wednesday that chairman and founder Michael Dell would retake the helm of the company, replacing its CEO, who abruptly resigned and is quitting the board. The company also warned that fiscal fourth-quarter sales and earnings would miss estimates. However, investors focused on the management changes, and Dell shares rose. Exxon Mobil (down $0.18 to $73.91, Charts) reported the highest annual profit in U.S. history Thursday morning, although fourth-quarter net income slipped from a year earlier. (Full story) Investors also eyed Google's (down $0.04 to $501.46, Charts) earnings, released late Wednesday. The Internet search leader reported higher quarterly and full-year financial results that topped analysts' estimates. However, investors used the strong report as a reason to sell the stock after its recent run. (Full story) Treasury prices were flat, with the yield on the benchmark 10-year note at 4.80 percent. In currency trading, the dollar rose versus the euro and slumped against the yen. U.S. light crude oil for March delivery rose 4 cents to $58.18 a barrel in electronic trading. |
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