US: Nasdaq closes at new all-time high

[NEW YORK] The Nasdaq bolted to a fresh record peak on Wednesday in a broad-based Wall Street rally that largely reversed sharp losses in the prior session.

The tech-rich Nasdaq Composite Index jumped 73.84 points (1.47 per cent) to 5,106.59, almost 15 points above the prior record set April 24.

The Dow Jones Industrial Average rose 121.45 (0.67 per cent) to 18,162.99, while the broad-based S&P 500 gained 19.28 (0.92 per cent) at 2,123.48.

Alan Skrainka, chief investment officer at Cornerstone Wealth Management, said the market is in a "back and forth" mode with little clear direction.

"Yesterday there was some nervousness over the potential for a Greek default and today we have a little more buying," he said.

Chipmaker Broadcom surged 21.5 per cent higher following reports it is close to a deal to be acquired by Avago Technologies, which rose 7.8 per cent.

The reports helped lift other chip companies, including Texas Instruments (+2.6 per cent) and Micron Technology (+3.0 per cent).

Other big gains came from Dow members Apple (+1.9 per cent) and Microsoft (+2.2 per cent), as well as Facebook (+1.5 per cent) and Netflix (+2.1 per cent).

Dow member McDonald's rose 0.2 per cent as it announced it would stop reporting its sales on a monthly basis and would instead only report them quarterly. The restaurant chain said the move would enable it to focus investors on its long-term strategy.

Jewelry retailer Tiffany vaulted 10.5 per cent higher as first-quarter earnings translated to 81 cents per share, much higher than the 70 cents projected by analysts.

Women's apparel and accessory seller Michael Kors slumped 24.2 per cent after projecting full-year sales of just US$4.7-$4.8 billion, below the US$5.05 billion analyst estimate.

Tobacco giant Reynolds American jumped 2.3 per cent as it received approval from antitrust regulators at the US Federal Trade Commission to acquire Lorillard. Lorillard rose 1.0 per cent.

Packaged meat company Hormel Foods rose 3.2 per cent after announcing it will acquire privately held organic prepared meat company Applegate Farms for US$775 million.

Bond prices rose. The yield on the 10-year US Treasury dipped to 2.13 per cent from 2.14 per cent Tuesday, while the 30-year dropped to 2.87 per cent from 2.89 per cent. Bond prices and yields move inversely.

AFP