Dow, S&P 500 end at record highs; DirecTV up late

NEW YORK Mon May 12, 2014 6:57pm EDT

Traders work on the floor of the New York Stock Exchange, October 3, 2013. REUTERS/Brendan McDermid

Traders work on the floor of the New York Stock Exchange, October 3, 2013.

Credit: Reuters/Brendan McDermid

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NEW YORK (Reuters) - The Dow and the S&P 500 ended at record highs on Monday while the Nasdaq rallied as shares of Internet and biotech shares advanced.

Biogen Idec (BIIB.O) jumped 4.8 percent to $300.54 and TripAdvisor Inc (TRIP.O) rose 5.8 percent to $89.51. Twitter (TWTR.N) gained 5.9 percent to $33.94 after news reports that brokerage SunTrust raised its rating on the stock to "buy."

These momentum shares have been wildly volatile in recent sessions after a sharp selloff that began in March on concerns about their high valuations.

"I think it's stabilizing a little bit for those stocks. Some would say they're still overvalued, but they've come down enough that it doesn't seem they have that much further to fall. Now people are trying to pick up bargains, and some of those stocks have been going up," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.

The Russell 2000 .TOY index of small-cap stocks climbed 2.4 percent, its biggest daily percentage gain since early March. At its session low Friday, the index was down exactly 10 percent from the intraday record high set in early March. A correction, which is a drop of 10 percent from a recent high, is often seen as a harbinger of more weakness. The iShares Russell 2000 ETF (IWM.P) rose 2.3 percent.

The Dow Jones industrial average .DJI gained 112.13 points or 0.68 percent, to 16,695.47, a record closing high. The Dow also hit an intraday record high of 16,704.84.

The S&P 500 .SPX rose 18.17 points or 0.97 percent, to 1,896.65, also a record closing high. The Nasdaq Composite .IXIC climbed 71.99 points or 1.77 percent, to 4,143.859.

The rally came despite a vote by pro-Russian rebels in favor of self-rule in eastern regions of the country in a referendum dismissed by Kiev and Western governments as illegal. The European Union is set to step up pressure on Russia by taking steps to extend sanctions to companies, as well as individuals.

Hillshire Brands Co HSH.N agreed to buy Pinnacle Foods Inc (PF.N) in a deal valued at about $6.6 billion, including debt. Pinnacle surged 13.2 percent to $34.47 while Hillshire fell 3.2 percent to $35.76.

U.S.-listed shares of Indian companies and India-related exchange-traded funds also rose as exit polls in India predicted that the country's main opposition party - viewed as more business friendly - would win general elections. Among ETFs, the Wisdom Tree India Earnings Fund (EPI.P) gained 3.7 percent.

In the latest development on deals in the healthcare sector, shares of U.S. drugmaker Allergan Inc (AGN.N) dropped 1 percent to $159.72 after the company, known for Botox, its popular anti-wrinkle treatment, rejected Valeant Pharmaceuticals International Inc's (VRX.TO) (VRX.N) takeover offer of $47 billion. Valeant's U.S.-listed shares slipped 0.8 percent to $130.16.

After the bell, shares of DirecTV (DTV.O) rose 6.6 percent to $92.95 after a source said AT&T Inc (T.N) is in advanced talks to acquire the company.

During the regular session, shares of 21st Century Fox (FOXA.O) rose 3.1 percent to $35.19. Britain's largest pay-TV company BSkyB (BSY.L) is in talks to buy Sky Deutschland (SKYDn.DE) and Sky Italia. Murdoch's 21st Century Fox is BSkyB's biggest shareholder.

About 5.8 billion shares changed hands on U.S. exchanges, below the 6.2 billion average for the month to date, according to data from BATS Global Markets.

(Editing by Jan Paschal)

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Comments (5)
PopUp wrote:
Up and down, up and down, so the stock market goes every week as computerized trading makes millions by manipulating, buying and selling stocks at will…instantly. It’s a rigged game.

May 12, 2014 11:02am EDT  --  Report as abuse
This rigged market has absolutely nothing to do with the real economy of America. Half the country is on food stamps, half the property sold is Wall Street investment all cash, the banks are still goosed by the Fed; this is a fake economy created by bankers that enriches them, and destroys the middle class.

May 12, 2014 12:03pm EDT  --  Report as abuse
StockBet.com wrote:
What happened to Sell in May and Go Away?

May 12, 2014 3:33pm EDT  --  Report as abuse
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