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Overnight Markets: Tech shares buoy Wall Street

Overnight Markets: Tech shares buoy Wall Street

 

Wall Street gained on Monday as investors bet tax cuts would keep the economic expansion going and high-performing tech shares were boosted by a deal in semiconductors.

The Dow Jones Industrial Average added 64 points, or 0.27%, to 23,422, the S&P 500 gained two points, or 0.09%, to 2,581 and the Nasdaq Composite added three points, or 0.05%, to 6,786.

With no major earnings or economic data scheduled this week, trading volumes were thin and expected to get even quieter leading up to the Thanksgiving holiday on Thursday and an early market close on Friday.

Verizon boosted the telecom services sector of the S&P 500 with a 2.0% advance after analysts at Wells Fargo upgraded the stock to outperform from market perform.

Cavium touched a record high of $83.82 after larger rival Marvell said it would buy the company for about $6 billion. Cavium shares were last up 10.4% and Marvell shares rose 6.0%.

The semiconductor index rose 1.1% and touched its highest level since the highs of the Y2K bubble.

Delphi Automotive and General Motors shares were among the best-performing stocks in the index, rising 3.4% and 2.3%, respectively.

Time Warner Inc shares slid after reports the US Justice Department will sue to prevent AT&T from buying Time Warner. Time Warner dropped 1.1%.

Health stocks were weighed by a 1.8% drop in Merck and 0.9% fall in Bristol-Myers after Roche announced positive trial results for a competing cancer drug.

IBM shares rose 1% after Barron's said IBM could gain more than 30 percent over the next 12 months.

In Asia, equities gained on Tuesday in morning session, recovering from a poor start to the week on Monday and following from a positive lead from New York.

Tokyo’s Topix was among the region’s best performers in early trading on Tuesday, adding 0.9%. Hong Kong’s Hang Seng index was up 0.7%.

In China, the main bourses were also higher, with the Shanghai and Shenzhen Composite indices adding 0.6% and 0.7% respectively.

In Sydney, the S&P/ASX 200 was up 0.3% with modest gains across all major sectors. The Kospi index in Seoul was 0.4% higher.

 

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