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Nasdaq jumps 2pc as US stocks advance

Nasdaq jumps 2pc as US stocks advance

NEW YORK: Technology and banking shares were among the big winners Tuesday as US stocks powered higher behind greater confidence in the US economic outlook.

Investors had been troubled by the prospects of a Federal Reserve interest rate increase, but “now they’re starting to embrace it,” said Charlie Bilello of Pension Partners. “It means the economy is doing a bit better.”

Sentiment was further boosted by Commerce Department data that showed US new-home sales in April surged to their best level since January 2008 despite a hefty rise in median prices.

The Dow Jones Industrial Average advanced 1.2 percent to 17,706.05.

The broad-based S&P 500 gained 1.4 percent to 2,076.06, while the tech-rich Nasdaq Composite Index jumped 2.0 percent to 4,861.06.

Analysts said US stocks also benefited from positive momentum in Europe, where equities rallied strongly in part due to polls showing Britain was more likely to vote in favor of staying in the European Union.

Apple rose 1.5 percent, while Microsoft jumped 3.1 percent. JPMorgan Chase and Citigroup both advanced 1.7 percent.

Agricultural giant Monsanto climbed 3.1 percent after it rejected a $62 billion takeover bid by Germany’s Bayer AG as too low, but said it was willing to entertain further talks on a merger.

Electronics retailer Best Buy sank 7.4 percent as it projected lower international revenues and per-share earnings in the second quarter compared with the year-ago period. Analysts said the forecast was weaker than expected.

RBC Capital said enthusiasm for Best Buy was also dampened by its announcement of the impending retirement of respected chief financial officer, Sharon McCollam, which was expected. “It’s hard for us to imagine this isn’t a negative for Best Buy,” RBC said.

Toll Brothers, a homebuilder specializing in luxury properties, jumped 8.7 percent after reporting second-quarter net income rose 31.2 percent to $89.1 million.

Copyright AFP (Agence France-Presse), 2016

Courtesy : BRecorder



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