NEW YORK REPORT: Stocks surged yesterday, driving the Nasdaq to its highest close in more than a year, after bigger-than-expected growth in the huge US services sector last month raised investors' hopes for better economic conditions in coming months.
Dow Jones Industrial Average: 9,038.98 (+116.03)
The Dow Jones Industrial Average jumped 116.03 points to 9,038.98, finishing above the key 9,000 mark for the first time since August 22nd, 2002. The Standard & Poor's 500 Index advanced 14.68 points, or 1.51 per cent, to 986.24, its strongest finish since late June last year. The tech-laced Nasdaq Composite climbed 31.09 points, or 1.94 per cent, to 1,634.55, a close unseen since late May 2002.
The Institute for Supply Management said its index of non-manufacturing activity rose to 54.5 in May from 50.7 in April. Any reading above 50 indicates growth. Economists had been expecting a more modest rise to 52.0.
High-tech stocks were in the lead, bolstered by companies like Flextronics International, up $1.44, or 14.23 per cent, at $11.56 after it said its outlook remained unchanged as business appears to be improving. But a warning from DaimlerChrysler dented auto sector stocks. DaimlerChrysler's US-traded shares fell 90 cents, or 2.8 per cent, to $30.75.
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