Thursday November 5, 10:19 PM
US STOCKS-Wall St rallies on economic data, Cisco
By Caroline Valetkevitch
NEW YORK, Nov 5 (Reuters) - U.S. stocks jumped on Thursday,
pushing the S&P 500 up for a fourth day, as economic data boosted
confidence in the recovery and strong results from Cisco Systems (NASDAQ: CSCO
- news) suggested a rebound in technology spending.
The market's advance was broad-based, and the Dow ended above
10,000 for the first time in two weeks.
Shares of Cisco, which makes computer network equipment, rose 2.8
percent to $23.93 and helped lead the session's gains, a day after it
posted a stronger-than-expected profit and said business was
recovering. For details, see
Data showed U.S. non-farm productivity rose more than expected in
the third quarter as companies squeezed more output from a smaller
pool of labor. A separate report showed fewer U.S. workers filed new
jobless insurance claims than forecast last week -- hitting a
10-month low.
The claims report boosted investor sentiment, and created 'some
anticipation that maybe tomorrow's employment report may be better
than expected,' said Peter Jankovskis, co-chief investment officer at
OakBrook Investments LLC in Lisle, Illinois.
The U.S. government is scheduled to release its key monthly jobs
report Friday morning, with economists polled by Reuters forecasting
a loss of 175,000 jobs in October, sharply below the 263,000 jobs cut
in the previous month. But the U.S. unemployment rate is forecast to
rise to 9.9 percent in October from September's rate of 9.8 percent,
which was a 26-year high.
The Dow Jones industrial average jumped 203.82 points, or
2.08 percent, to end at 10,005.96. The Standard & Poor's 500 Index gained 20.13 points, or 1.92 percent, to 1,066.63. The Nasdaq
Composite Index rose 49.80 points, or 2.42 percent, to close
at 2,105.32.
CAFFEINE SHOT AFTER THE BELL
After the bell, shares of coffee chain operator Starbucks Corp (NASDAQ: SBUX - news) rose 1.5 percent to $20 as it posted quarterly results.
During the regular session, tech stocks climbed across the board,
with the NYSE Arca Network index up 2.1 percent, while the
PHLX Semiconductor index advanced 2.6 percent.
Shares of DuPont rose 3.7 percent to $33.38 after its
chief executive outlined plans for growth in 2010 and after.
In deal news, IMS Health Inc (NYSE: RX - news) agreed to be bought by TPG
and CPP Investment board and helped lift the S&P Healthcare index 1.6 percent. The deal was valued at $5.2 billion, including
the assumption of debt. IMS Health shares surged 23.3
percen to $20.73.
On the downside was CVS Caremark Corp , which tumbled
20.1 percent to $28.87 after comments from Chief Executive Tom Ryan
on weakness in the pharmacy benefit management business.
U.S. retail chains reported October sales that rebounded from the
lows in the previous year, but more than half missed Wall Street's
increased expectations as consumers spend selectively headed into the
holiday season.
The S&P retail index rose 1.8 percent.
Volume was below average on the New York Stock Exchange, with
1.30 billion shares changing hands, below last year's estimated daily
average of 1.49 billion, while on the Nasdaq (NASDAQ: news) , about 2.25 billion
shares traded, just below last year's daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by a
ratio of 5 to 1, while on the Nasdaq, about seven stocks rose for
every two that fell.
(Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)
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