Dow, S&P 500 end higher on Microsoft, Europe data

NEW YORK Wed Nov 6, 2013 5:00pm EST

1 of 2. A trader works on the floor of the New York Stock Exchange, November 4, 2013.

Credit: Reuters/Brendan McDermid

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NEW YORK (Reuters) - The Dow industrials closed at a record high on Wednesday, led by gains in Microsoft Corp (MSFT.O) and encouraging European economic data, while the S&P 500 also rose but closed shy of its own record.

Meanwhile the Nasdaq fell, hurt by losses in Tesla Motors and as investors readied for Twitter's much-anticipated IPO.

The benchmark S&P 500 rose as high as 1,773.79 intraday, above its closing high of 1,771.95 set on Oct 29. Its all-time intraday peak came the day after at 1,775.22.

Microsoft was the biggest gainer on the blue chip Dow index after Reuters reported the company had narrowed its CEO search to a handful of names. Its shares rose 4.2 percent to $38.18 after rising as high as $38.22, the highest since July 2000.

However, other big technology shares slipped. Apple Inc (AAPL.O) was down 0.3 percent at $520.92, Facebook Inc (FB.O) was down almost 2 percent at $49.12. Google (GOOG.O) which fell as low as $1,015.37 earlier, closed up 0.1 percent at $1,022.75.

"The market is pretty much all green but those three big powerful tech names are slightly down," said Daniel Morgan, vice president and senior portfolio manager at Synovus Investment Advisors.

"It's interesting that these three companies have had such great momentum and fundamentals - I don't know if some of that money is shifting out in anticipation of Twitter."

Twitter Inc (TWTR.N) is expected to begin trading on Thursday in the hottest IPO of the year. The microblogging network, which has yet to turn a profit, has amassed 230 million users in seven years, including heads of state, celebrities and activists.

One day before the social media giant's IPO, several other companies sold shares that debuted on Wednesday. Barracuda Networks Inc (CUDA.N) shares jumped nearly 20 percent to $21.55, but several other IPOs barely moved in their first day of action.

"One of the barometers for the health of market conditions we look at is the ability for the market to absorb a large amount of IPOs," said Art Hogan, managing director at Lazard Capital Markets in New York.

If all 13 scheduled IPOs price this week, it will be the busiest week of the year in terms of the number of primary issues since September 2007 According to Thomson Reuters data.

The Dow Jones industrial average .DJI was up 128.66 points, or 0.82 percent, at 15,746.88. The Standard & Poor's 500 Index .SPX was up 7.52 points, or 0.43 percent, at 1,770.49. The Nasdaq Composite Index .IXIC was down 7.92 points, or 0.20 percent, at 3,931.95.

Another sign of encouragement came from German industrial orders rising more than expected, which is significant as the country is the economic engine of the euro zone.

Weighing on the Nasdaq was Tesla Motors Inc (TSLA.O), which saw shares slump more than 14 percent to $151.16 after the electric car maker forecast a weaker-than-expected fourth-quarter profit and its third-quarter Model S deliveries disappointed some analysts. Shares are up 350 percent for the year, and the stock has been a target of short-sellers who see it as overvalued.

Ralph Lauren Corp (RL.N) shares advanced 5.5 percent to $180.52 after the designer clothing company raised the lower end of its full-year sales forecast on the expectation of strong gains during the holiday quarter and increased its dividend.

Abercrombie & Fitch Co (ANF.N) shares fell 13.5 percent to $33.13 on Wednesday after the company reported a seventh quarterly fall in same-store sales in a row and warned of a tough holiday season.

About 6.2 billion shares of NYSE-listed securities, AMEX and regional exchange-listed securities and Nasdaq-listed securities traded on Wednesday, according to data by Bats Global Markets.

(Reporting by Angela Moon; Editing by Nick Zieminski)

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Comments (1)
brotherkenny4 wrote:
It continues on because no one is taking the bait. The intent was to push people out of savings and bonds and into the market where this artificially created bubble could be burst thus destroying the savings of the few people left who are middle class. People are on to you thieves (basnkers). The bankers also don’t recognize the difference in the GOP. It used to be these were the brainwashed middleclassers that believed they could become rich (even thought they never did) on the stock market. Now however, the GOP is more and more the tea party folks and they are not bright enough in general to make enough to invest. The liberals either don’t have the bread or don’t have the greed. So who, I ask is being convinced to stick their lifes saving in stocks? No one apparently because the fed keeps on with the scam. Now, I know the wealthy believe if they create more poverty they will be able to force people into crappy jobs with no way of ever getting ahead, which is of course the old robber baron way of enslaving people, but I doubt that will work. Simply because information (truth basically) is more available than in the past when communities could be isolated and manipulated with the help of priests and teachers. Ben Bernanke is oblivious to these realities because he has lived a sheltered and pampered life. He knows nothing of the real world. His philosophies are those of the past and he himself is not perceptive enough to see the coming change. It may not be pretty, but it is real, and he won’t know what it means.

Nov 06, 2013 10:14am EST  --  Report as abuse
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