Wall Street Stocks Rise Amid Lower Oil Prices and Upbeat Earnings

Strategic Insights -

Wall Street stocks, driven by the technology sector, continued their upward trend in the mid-afternoon, fueled by lower oil prices and investors' optimism regarding the week's economic reports. The Nasdaq Composite Index, a technology-heavy benchmark, approached a six-year high, with notable gains in Dell, Intel, and Isis Pharmaceuticals. Meanwhile, gene-testing technology company Illumina announced its acquisition of Solexa in a $600m stock deal, and KB Home's shares fluctuated after news of its CEO's departure.

Key Takeaways:

  • The Nasdaq Composite Index, driven by technology bellwethers, rose towards a six-year high, with key contributors including Dell, Intel, and Isis Pharmaceuticals.
  • Dell shares rose $0.86, or 3.5%, to $25.75, while Intel climbed $0.40, or 1.9%, to $20.98.
  • Isis Pharmaceuticals' shares surged 19.1% to $12.36 after announcing successful results from an experimental drug to lower LDL cholesterol.
  • Illumina agreed to acquire Solexa in a $600m stock deal, 44% above Solexa's share price from the previous week.
  • Kratos, CEO of KB Home, will depart after an inquiry into a stock-option grant price concludes, and will repay the company $13m.
  • Gannett's shares rose 1.5% amid speculation it plans to bid for either all or part of newspaper group Tribune.
  • The S&P 500 Index rose 4.15 points, or 0.3%, to 1,385.05, while the Nasdaq Composite Index climbed 12.94 points, or 0.5%, to 2,402.66.

Statistics:

  • Dell's shares rose 3.5% to $25.75 as of the mid-afternoon.
  • Intel's shares climbed 1.9% to $20.98.
  • Isis Pharmaceuticals' shares surged 19.1% to $12.36.
  • Illumina agreed to acquire Solexa in a $600m stock deal, representing 44% above Solexa's previous week's share price.
  • KB Home's shares rose 2% to $44.68 before fluctuating.
  • Gannett's shares increased 1.5% to $60.04.
  • The S&P 500 Index rose 4.15 points, or 0.3%, to 1,385.05.
  • The Nasdaq Composite Index climbed 12.94 points, or 0.5%, to 2,402.66.
  • The Dow Jones Industrial Average rose 37.38 points, or 0.3%, to 12,145.81.

Sources:

  • MICHAEL MACKENZIE, Wall Street stocks, led by technology bellwethers, were holding gains by mid-afternoon in New York yesterday, with investors buoyed by lower oil prices and hopeful that economic reports this week will show the economy remains robust and inflation is contained. (Source: MICHAEL MACKENZIE, Wall Street Journal)
  • Dell was up 86 cents, or 3.5 per cent, at Dollars 25.75, while Intel climbed 40 cents, or 1.9 per cent, at Dollars 20.98. (Source: MICHAEL MACKENZIE, Wall Street Journal)
  • Illumina agreed to acquire Solexa in a $600m stock deal, 44% above Solexa's share price from the previous week. (Source: MICHAEL MACKENZIE, Wall Street Journal)
  • Isis Pharmaceuticals' shares surged 19.1% to $12.36 after announcing successful results from an experimental drug to lower LDL cholesterol. (Source: MICHAEL MACKENZIE, Wall Street Journal)