U.S.
stocks rose, with the Standard & Poor��s 500 Index erasing an
earlier slide as Internet and smaller companies pulled back from a
selloff amid optimism over merger activity.
The
S&P 500 rose 0.3 percent to 1,869.42 at 4 p.m. in New York, erasing
an earlier loss of 0.7 percent. The Dow Jones Industrial Average
increased 86.76 points, or 0.5 percent, to 16,448.22. The Nasdaq
Composite Index slipped less than 0.1 percent, after tumbling as much as
1.5 percent, and the Russell 2000 Index of smaller companies slid 0.5
percent.
U.S.
equities began higher as large companies rallied on optimism about
merger activity. Stocks turned lower as the U.S. and European Union
imposed new sanctions on Russia, while selling in Internet and small-cap
stocks spread to the broader market. Major indexes recovered in the
afternoon, turning positive during the final hour of trading.
The
Nasdaq Composite declined 0.5 percent last week, including a 1.8
percent tumble on April 25, as disappointing results from Amazon.com
Inc. triggered a selloff in technology shares and tensions over Ukraine
intensified. The technology-heavy gauge has fallen in four of the past
five weeks amid concern valuations have outpaced estimates for earnings
growth. Nasdaq companies trade at 34 times reported earnings, about
double the level of S&P 500 members.
The
frequency of selloffs has increased even as technology makers are
forecast to post the second-fastest profit growth in the S&P 500
this year and members of the Nasdaq gauge are beating analyst estimates
by almost 10 percent this earnings season.
Increases
among larger stocks helped push technology companies in the S&P 500
higher as a group. Microsoft surged 2.4 percent to $40.87 and Apple
climbed 3.9 percent to $594.25 to extend its three-day rally to 13
percent, the most since 2009. International Business Machines Corp.
added 1.9 percent to $193.22.
The
Dow Jones Internet Index fell 1.9 percent, extending a 4.1 percent
decline on April 25. The index has dropped 18 percent from a 13-year
high on March 5. Only five of 41 members in the gauge rose today.
Source : Bloomberg
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