Stock market advance puts record highs within reach | TribLIVE
NEW YORK — Stocks climbed back close to record levels Thursday as technology, materials and energy companies all notched big gains.
Cisco Systems led the technology sector higher after reporting better-than-expected earnings. Energy stocks rose as the price of oil rebounded from two days of heavy losses.
There were big gains for online travel companies. Expedia and Orbitz jumped after Expedia said that it was acquiring its rival. TripAdvisor surged on speculation that the wave of consolidation in the industry would continue.
Stocks have logged big gains in February after slumping to their worst month in a year in January on worries about the outlook for the global economy. Reports this month have shown that company earnings are still growing and the economy appears to be maintaining its recovery as hiring picks up.
“People were getting a little bit overly pessimistic,” said Karyn Cavanaugh, a senior market strategist at Voya Investment Management. “I still think we’re going to see a pretty decent year for the market.”
The Standard & Poor’s 500 index climbed 19.95 points, or 1 percent, to 2,088.48. The index is within two points of its record close of 2,090.57, set Dec. 29.
The Dow Jones industrial average gained 110.24 points, or 0.6 percent, to 17,972. The Nasdaq composite climbed 56.43 points, or 1.2 percent, to 4,857.61.
Helping stocks to open higher was encouraging news from Europe, where world leaders clinched a cease-fire deal for Ukraine and hopes grew that Greece will be able to reach an agreement with its creditors. The main Athens stock index jumped 6.7 percent.
TripAdvisor was the biggest gainer in the S&P 500, surging $15.13, or 23 percent, to $82.40, after the announcement of Expedia’s bid for Orbitz.
Cisco, a major maker of computer networking equipment, was another big gainer. The stock jumped $2.53, or 9.4 percent, to $29.46 after topping expectations late Wednesday with its quarterly earnings and sales outlook for the full year.
The S&P 500 index is up 4.7 percent for the month. If the market closes out February at this level, it will be the best performance for the index since July 2013.
Still, not all investors are convinced that stock prices will keep going up this year.
Katrina Lamb, head of investment strategy and research at asset manager MV Financial, said the most likely path for the market is sideways. Concerns about the potential impact of higher rates at home and the outlook for overseas growth will likely keep the stock market in check.
“I don’t really see much of a breakout potential (for stocks) in either direction,” Lamb said. “It’s going to be more of muddling along.”
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Stock market advance puts record highs within reach | TribLIVE
