Markets rose to fresh highs as technology stocks led the rally after strong earnings results from Juniper Networks Inc JNPR showed a continued demand for high-tech equipment.
The Dow rose above the psychological 12000 mark for the very first time after June 2008 before ending the day at 11985.44 as the index was held in check by weak earnings results of Boeing BA. The blue-chip index gained 8.25 points or 0.07%. The S&P 500 gained 0.42% to end the day at 1,296.63. The index closed at an all time high since the past 29 months. The tech-laden Nasdaq jumped 0.74% and closed at 2,739.50, its highest close since November 7, 2007. On the New York Stock Exchange, market breadth was on the positive side and about seven stocks rose for every three stocks that fell. On the New York Stock Exchange 8.10 billion shares were traded.
The Commerce Department gave an upbeat outlook for the economy by reporting a surge in New Home Sales. New Home Sales increased 17.5% in December to 329,000, the highest level recorded since April 2010. On Wednesday, the Federal Reserve once again kept key interest rates within the 0% to -0.25% range and decided to continue with its $600 million Treasury buying program. The stock market reacted little to the Fed's decision as economists had expected that the Fed will stick to its old key interest rate and would continue with its bond-buying program.
On the international front, there was no significant international news that could have tilted the markets on either side. Major European indexes closed in the green.
On to news of earnings and estimates, shares of networking company Junipers Networks JNPR jumped 6.4% after the company reported higher revenues for the fourth quarter and issued a forecast which was in line with estimates. The company reported a fourth quarter profit of $190.2 million and revenues of $1.19 billlion up from $941 million year-over-year. Share prices of Juniper JNPR closed at $37.05. Share prices of Molex MOLX rocketed up 5.17% to $26.65 after the electronics manufacturing service provider reported a surge in its earnings numbers and forecasted increased estimate figures for the coming quarter. Share prices of Boeing BA fell 3.1% to $70.02 after the aircraft maker posted weak earnings results which saw a drop in quarterly profits and offered a gloomy forecast. Shares of Qualcomm Inc QCOM gained 4.3% to $54.11 after the company reported an increased forecast for 2011 revenues and a more profitable second quarter revenue. Shares of network security systems provider, Fortinet Inc FTNT gained 16.9% after the company reported better than expected results. On the other hand, shares of Starbucks Corp SBUX fell 2% to $32.40 after the company reported lower than expected results because of rising coffee prices.
On a sectoral basis, technology stocks led the rally. Stocks such as Dell Inc DELL, Apple AAPL, Microsoft Corp MSFT and Intel Corp INTC gained 0.22%, 0.20%, 0.42% and 0.07% respectively. Oil and energy companies also joined the rally. Share prices of Halliburton HAL and Cameron Intl CAM rocketed nearly 8% and 6% to close at $43.69 and %53.35 respectively. ConocoPhillips COP reported a better than expected profit resulting in the share prices of the company gaining 2.62% to close at $69.25. Valero Energy's VLO share prices rose 4.03% to $25.30 after the company reported a bright outlook for 2011.
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