Merger moves sends US stocks higher
Investors welcomed the possibility of increased merger activity and sent stocks higher today despite a lack of other news that kept trading volume light.
The Nasdaq composite index reached a new five-year high after a modest gain.
With Citigroup Inc. freed to pursue expansion by federal regulators and Computer Sciences Corp. putting itself up for sale, investors were cheered by the potential for M&A activity to remain strong through the rest of the year.
However, there were no new economic reports or major corporate earnings and some investors held off from making big bets ahead of Friday’s Labour Department report on job creation, a key barometer of economic health.
“There’s fairly widespread anticipation that the economic numbers this week will be solid, though not great, and I think the market is reflecting that,” said Hugh Johnson, chief investment officer at Johnson Illington Advisers.
The Nasdaq composite index gained 8.62, or 0.37%, to 2,345.36. It was the index’s best showing since February 16, 2001, when it closed at 2,425.38.
Other stock indicators also moved higher. The Dow Jones industrial average rose 58.91, or 0.53%, to 11,203.85, and the Standard & Poor’s 500 index added 8.12, or 0.63%, to 1,305.93.
