Dow Jones: 12,681.16 (–43.25) Nasdaq: 2,858.83 (+24.40) S&P 500: 1,345.02 (1.22)US TECHNOLOGY stocks rallied on improving earnings yesterday, sending the Nasdaq-100 Index to a 10-year high.
The weekly gain was extended for the Standard and Poor’s 500, while lower-than-estimated results at Caterpillar dragged the Dow Jones Industrial Average lower.
AMD rose 19 per cent after the chipmaker forecast more sales than analysts had estimated.
Technology stocks in the SP 500 gained 1.2 per cent, the most among 10 industries, as SanDisk added 9.6 per cent after earnings beat projections.
Caterpillar slid 5.8 per cent as profit trailed projections because of the earthquake in Japan and slower demand from China.
CR Bard declined 12 per cent, the largest fall in the S&P 500, after reporting a loss in the second quarter.
The SP 500 rose 0.09 per cent to 1,345.02 in New York and gained 2.2 per cent for the week.
The Dow Jones Industrial Average dropped 43.25 points, or 0.3 per cent, to 12,681.16.
Gains in technology stocks pushed the Nasdaq-100 up 0.8 per cent to a 10-year high.
“You’re seeing fast money gravitate to the large-cap tech names, viewing them as better able to withstand slower economic growth,” said Mark Bronzo, who helps manage $26 billion at Security Global Investors in Irvington, New York.
“There are a couple stocks weighing on the Dow where the earnings came out a little less than expected but overall, earnings have been pretty good.
“All eyes are on the budget deficit discussion. It’s not a market people really want to short,” he said.
Stocks had surged on Thursday after euro-area leaders eased the terms of loans for cash-strapped nations and announced the latest aid for Greece after eight hours of talks.
“Policy makers have made an important step,” said Jeffrey Palma, global equity strategist at UBS.
“Is this the be-all end-all package? No, and I think we need to be concerned still that there are medium-term challenges, but I do think it eliminates some of those tail risks.
Quarterly reports from corporations also helped boost US stocks this week.
– (Bloomberg)
