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Nasdaq closes above 4,000 for first time in 13 years

Reuters | Last Updated: Wednesday, November 27, 2013 - 09:11

New York: The Nasdaq composite index closed above 4,000 on Tuesday for the first time since 2000, while the Dow and S&P ended barely changed.

Retailers and homebuilders were among the best performing sectors, responding to stronger-than-expected earnings and robust housing market data.

Big-cap technology stocks helped the Nasdaq the most on Friday to finish above 4,000 for the first time since the dot-com bubble burst in 2000 and sent the tech-heavy index hurtling.

Tiffany & Co(TIF.N) jumped 7 percent to USD 88.02 and was the S&P 500's top performer after the luxury retailer's third-quarter sales topped expectations. The S&P retail index advanced 0.9 percent.

"The wealth effect because the stock market has gone up has definitely helped the upper-end folks," said Gary Bradshaw at Hodges Capital Management in Dallas, Texas.

Moreover, Bradshaw said gasoline prices were giving a potential boost to broad-based holiday spending. Wal-Mart Stores Inc (WMT.N) shares rose 0.3 percent to close at an all-time high of USD 80.86 a day after the retailer named a new chief executive.

Jos. A. Bank Clothiers Inc surged 11.2 percent to USD 56.29 after Men's Wearhouse(MW.N) offered to buy the company for USD 55 per share in cash, a 9 percent premium to its Monday close. Men's Wearhouse jumped 7.5 percent to USD 50.60.

On the Nasdaq, Apple Inc (AAPL.O) gained 1.8 percent to USD 533.40, Google Inc(GOOG.O) rose 1.2 percent to USD 1,058.41 and Inc shares ended up 1.3 percent to USD 381.37.

The PHLX Housing Index rose 2.5 percent after stronger-than-expected figures on building permits for October and a steady rise in housing prices. Ryland Group led the index, gaining 5.6 percent to USD 40.02 a share.

Permits for future U.S. home construction hit a 5-1/2 year high and an index of single-family home prices notched big gains in September.

"The takeaway here is that the whole partial government shutdown thing was a real non-event," said Jay Mueller, senior portfolio manager for Wells Capital Management.

The Dow Jones industrial average ended up 0.26 point to 16072.80. The Standard & Poor's 500 Index .SPX gained 0.27 point, or 0.01 percent, to 1,802.75. The Nasdaq Composite Index rose 23.18 points, or 0.58 percent, to 4,017.75.

The S&P 500 has risen nearly 27 percent this year, primarily bolstered by expectations the Federal Reserve's stimulus will continue at least until the end of the year.

The Walt Disney Company (DIS.N) led the Dow in percentage gain, with shares rising 2.1 percent to USD 71.18. The company announced better-than-expected earnings earlier in the month.

Trading is expected to remain light this week, with financial markets closed Thursday for the Thanksgiving holiday. Markets will also close early at 1 pm on Friday.

First Published: Wednesday, November 27, 2013 - 09:11
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