WebSify
Follow us on
Mail
Print

US STOCKS-Wall Street jumps; Nasdaq near 12-year high

Source : REUTERS
Last Updated: Fri, Feb 08, 2013 20:30 hrs

* China, German trade data signal growth in demand

* Narrower U.S. trade deficit should boost GDP

* Shares of LinkedIn surge on earnings, outlook

* Indexes up: Dow 0.3 pct; S&P 500 0.5 pct; Nasdaq 0.9 pct

By Caroline Valetkevitch

NEW YORK, Feb 8 (Reuters) - U.S. stocks climbed on Friday, pushing the S&P 500 to a fresh five-year high and putting the Nasdaq within a hair of a 12-year intraday high, following a batch of encouraging domestic and international economic reports.

Data showing stronger international trade in China and Germany, and a report indicating the U.S. trade deficit had narrowed in December, pointed to improving global demand.

"That may have sent a ray of optimism," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

The technology sector led the day's gains, with the S&P 500 technology index up 1 percent. Gains in LinkedIn Corp and AOL Inc following their quarterly results helped the sector.

The benchmark S&P 500, up more than 6 percent for the year, is on track for six straight weeks of gains for the first time since August 2012.

But an advance has been tougher in recent days as investors await strong trading incentives to drive the index further upward.

"I think we're in the middle of a trading range and I'd put plus or minus 5 percent around it. Fundamental factors are best described as neutral," Dickson said.

The Dow Jones industrial average was up 40.94 points, or 0.29 percent, at 13,984.99. The Standard & Poor's 500 Index was up 7.72 points, or 0.51 percent, at 1,517.11. The Nasdaq Composite Index was up 27.94 points, or 0.88 percent, at 3,193.08.

The Nasdaq was just 3 points shy of its highest level since November 2000.

Shares of LinkedIn jumped 21.1 percent to $150.31 after announcing quarterly profits and giving a bullish forecast for the year.

AOL Inc shares rose 7.5 percent to $33.77 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.

The CBOE Volatility index, Wall Street's so-called fear gauge, was down 4.2 percent at 12.94. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.

"I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research. "The break below it at the beginning of the year signaled the sharp rally in January, and a rally back above it could be a sign to exercise some caution."

Data showed Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand, while German data showed a 2012 surplus that was the nation's second highest in more than 60 years, an indication of the underlying strength of Europe's biggest economy.

Separately, U.S. economic data showed the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did much better in the fourth quarter than initially estimated.



blog comments powered by Disqus
most popular on facebook
talking point on sify finance