Reuters - Video

Edition: US | UK | IN | CN | JP

Top News

S&P 500 joins Dow at record high

Monday, May 12, 2014 - 02:18

May 12 - The S&P 500 and the Dow both closed at record highs as stocks soar across the board, but tech names like Twiitter, TripAdvisor, Salesforce.com, Netflix and Facebook led the party. Conway G. Gittens reports.

▲ Hide Transcript

View Transcript

Another record high for blue chips and the S&P 500 joined the party with its own record. The rally was broad based but investors were happy to grab beaten down tech and biotech shares. As for the numbers: the Dow rallying four days in a row, The S&P 500 up roughly a percent. And the Nasdaq saw its best one-day gain in more than two months. Noted investor Jim Rogers - not worried about the U.S. stock market overall. SOUNDBITE: JIM ROGERS, CHAIRMAN, ROGERS HOLDINGS (ENGLISH) SAYING: "Some parts of it are probably overvalued - maybe a bubble in things like social media or biotechnology. You know the S&P is making a new high but the average S&P stock is only up nine percent - sorry is down nine percent this year so it's only a few stocks, a few big stocks that are causing the S&P to go up." Twitter, upgraded to "buy" from "hold" at SunTrust Robinson Humphrey but not before a nasty fall. Take a look at this chart, the stock had lost half its value from the start of the year through Friday. SunTrust says now is a good time to buy the stock because while the social network may never be as big as Facebook, Twitter will be able to boost sales and close the ad revenue gap with its bigger rival. The analyst, however, did lower his price target to $45 from $50. Shares of Twitter closing the day up almost 6 percent. Salesforce, TripAdvisor, Netflix, and Facebook all among market leaders. The head of International Business Machines admitted the company is facing a "rocky time" to the New York Times this weekend. Sales recently slumped to its lowest in five years as customers shift to the cloud and sales slow in China. Investors are holding out for a turnaround and bid the stock higher. Hungry for a deal? Hillshire Brands, the company behind Jimmy Dean sausages paying up $4.3 billion for Pinnacle Foods. The combined company will have a stronger hold at the supermarket from frozen foods to desserts and a lot in between. Shares of Hillshire down more than 3 percent. Pinnacle surging 13 percent. In Europe: stocks rallied to a six-year high after corporate results out of Italy boosted signs of a recovery in that region's third largest economy.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

S&P 500 joins Dow at record high

Monday, May 12, 2014 - 02:18