Techs Fuel Rally
Tech stocks surged Monday. The rally was led by a broad range of Nasdaq stalwarts including Sun Microsystems (SUNW ), Cisco Systems (CSCO ) and VERITAS Software (VRTS ). Blue chips, meanwhile, overcame previous losses to end higher.
Tech leaders included shares of Internet, semiconductor, networking, and biotech companies. Amid the blue chips, Dow components were dragged down by disappointing earnings from the retail sector. Among the retail casualties, specialty apparel retailer Limited Inc. (LTD ) and lingerie retailer Intimate Brands Inc. (IBI ).
Other stocks in the news Monday included Procter & Gamble (PG ), which announced that it plans to buy the Clairol business from Bristol-Myers Squibb (BMY ) for $4.95 billion in cash.
Market observers, meanwhile, continued to focus on a turnaround beginning later in the year. "The economy will start gathering some strength at the end of this year and into 2002," Joshua Feinman, chief economist at Deutsche Asset Management and investment advisor for Deutsche Funds, told Standard & Poor's research unit. "Part of the stimulus has, of course, been the renewed commitment by the Federal Reserve to ease rates, but we are also starting to see tax cuts and inventory corrections all factors that should buoy the economy," he added.
The Dow Jones Industrial Average finished up 36.18 points, or 0.32%, to 11,337.92. The Nasdaq Composite index gained 106.66 points, or 4.85%, to 2,305.54. Meanwhile, the broader S&P 500 added 20.87 points, or 1.62%, to 1,312.83.
Treasuries ended higher. A curve-flattening trade hit the short end while the bond benefitted and shrugged off the stock trade, moving back to session highs. In economic news, data on sales of new and existing homes, durable goods orders for April and gross domestic product were scheduled for Thursday and Friday.
European markets finished higher. In London, the Financial Times Index gained 26.60 points, or 0.45%, to 5,94133.90. In Germany, the DAX index added 63 points, or 1.02%, to 6,249.87. In France, the CAC 40 was up 13.80 points, or 0.24%, to 5,652.04.
Asian markets closed higher. In Tokyo, the Nikkei 225 closed up 299.06 points, or 2.15%, to 14,176.83. The rise was supported largely by foreign investors adjusting positions with the reshuffle in the MSCI index. In Hong Kong, the Hang Seng jumped 262.09 points, or 1.95%, to close at 13,721.27.
By Heesun Wee in New York