Technology sector's upturn lifts Wall Street

Dow Jones: 12,318.14 (+29.97) SP 500: 1,340.43 (+4.11) Nasdaq: 2,831.58 (+6.02)

US INVESTORS piled on a dizzying two-year advance in stocks yesterday, using a brief slip on negative economic news as an opportunity to buy into market leaders.

The technology sector showed strength, with Nvidia up 9.8 per cent to $25.68 a day after posting a bullish revenue forecast on accelerating sales of its processors.

An index of semiconductors’ shares gained 1.4 per cent and is now up 21.3 per cent since early December, around the time when the most recent leg of the run-up started.

The SP energy sector gained 0.8 per cent. US crude futures jumped 1.7 per cent as unrest in the Middle East kept focus on supply, boosting shares of energy companies.

Futures had dipped early in the session after data showed both a rise in consumer prices and new claims for unemployment benefits, but the dip did not last long after the open.

“People have been focusing on the positives like the outlook for corporations and a good earnings season,” said Brian Lazorishak, a money manager at Chase Investment Counsel in Charlottesville, Virginia.

Stocks continued to ignore Iran’s intention to send two navy vessels through the Suez Canal to the Mediterranean in a move Israel has called a “provocation”.

“Geopolitical issues have been pushed aside, maybe prematurely,” Lazorishak said.

The SP 500 has doubled its value in less than two years, the quickest 100 per cent gain since the Great Depression.

The Dow Jones industrial average gained 29.97 points, or 0.24 per cent, to 12,318.14.

The SP’s 500 Index rose 4.11 points, or 0.31 per cent, to 1,340.43.

The Nasdaq Composite Index added 6.02 points, or 0.21 per cent, to 2,831.58.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 5 to 3, while on the Nasdaq, about three stocks rose for every two that fell.

Dr Pepper Snapple posted quarterly profit that beat estimates and gave an upbeat forecast and its shares jumped 5.7 per cent to $36.20.

Coca Cola was the top gainer in the Dow industrials, up 1.8 per cent to $64.55. Coke also reported a rise in its dividend.