US Stocks Rise, Nasdaq Hits 5000 after Data

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US Stocks Rise, Nasdaq Hits 5000 after Data

US stocks rose with the Nasdaq hitting above the 5000 mark for the first time in around 15 years, as a round of mixed data pointed to a slow acceleration economy.

The Nasdaq Composite has been oscillating around the milestone after reaching it for the first time since March 27, 2000 during the height of the dot.com era.

The Nasdaq briefly topped 5000 before retreating.

According to Reuters, the Dow Jones Industrial Average rose 0.57% or 104.07 points to 18,236.77 while the S&P 500 climbed 0.3% or 6.27 points to 2,110.77. The Nasdaq Composite Index gained 0.47% or 23.34 points to 4,986.87.

Chip maker NXP Semiconductors NV has accepted to purchase smaller peer, Freescale Semiconductor Ltd to create a company that will be valued above $40 billion. NXP shares rose 16% to $98.52, the largest boost to the Nasdaq and Freescale rose 11.1% to $40.10.

Boston Scientific Corp said that it would acquire Endo International Plc’s American Medical Systems urology portfolio for up to $1.65 billion. Boston Scientific climbed 0.75 to $16.98 while Endo rose 2.5% to $87.76.

The Wall Street Journal reported that despite the 5000 hit, traders reported light activity.

Michael Antonelli, sales trader at Robert W. Baird said, “You’ve got the deal in the Nasdaq… and there were no waves to rock the boat over the weekend. The market’s not flying on volume. It’s certainly not nonstop action, but that’s kind of how it’s been with these markets that grind higher.”

US treasury bonds rose after data showed a rise in personal income in January, easing fears that US economic growth might be slowing.

Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC said, “What you’re seeing is people trading out of utilities as yields are improving on bonds.”

To contact the reporter of this story; Jonathan Millet at john@forexminute.com