By Jessica Menton -
Dow Jones Industrial Average gained more than 100 points Thursday, strong earnings from Cisco Systems, Inc., while the the Nasdaq Composite Index rose to its highest closing level since March 2000.
U.S. stocks closed higher Thursday after strong earnings from Cisco Systems, Inc. helped boost the Dow Jones Industrial Average more than 100 points. A cease-fire agreement between Russia and Ukraine also helped lift investor sentiment, even as Greece was unable to reach a deal with the European Union to remain in its bailout program.
The Nasdaq Composite Index rose to its highest closing level since March 2000 Thursday and the S&P 500 traded near all-time highs, up more than 1 percent for 2015, and just 2 points shy of setting a new closing record.
The Dow Jones Industrial Average, which measures the share prices of 30 large industrial companies, gained 110.24 points, or 0.62 percent, to close at 17,972.38; the S&P 500 stock index added 19.95 points, or 0.96 percent, to end at 2,088.48. The Nasdaq Composite rose 56.43 points, or 1.18 percent, to finish at 4,857.61.
Cisco Boosts Dow, While Expedia Adds to Nasdaq's Gains
Dow component Cisco Systems, Inc. NASDAQ:CSCO helped boost the blue-chip index after the company's stock jumped more than 9 percent Thursday to close at $29.46. The network equipment maker's earnings topped Wall Street forecasts, boosting the stock to its largest one-day gain since May 2013.
Cisco also helped push the tech heavy Nasdaq to its highest level since March 2000 following the opening bell. The Nasdaq also received a boost from Expedia Inc. after the online travel giant announced Thursday plans to buy rival Orbitz Worldwide Inc. for $1.3 billion. Shares of Expedia Inc. jumped more than 14 percent Thursday to close at $89.57, while shares of Orbitz skyrocketed more than 21 percent to end at $11.72 on the New York Stock Exchange.
Tech Giant Apple Closes at All-Time High
Shares of Apple Inc. NASDAQ:AAPL rose more than 1 percent Thursday to close at a record high of $126.46, a day after billionaire activist investor Carl Icahn announced shares of the tech giant should be trading at 20 times earnings per share of their current level. That would value the tech giant at $216 per share, sharply exceeding its record high of $127.48 the company hit Thursday. This would translate into the tech giant being worth nearly $1.3 trillion.
The world's most valuable company ended Tuesday€™s trading session setting a new milestone, hitting a market capitalization of more than $700 billion. This marked the first time a U.S. company has broken through the feat. Thursday, Apple closed with a market cap of more than $728 billion.
Oil Prices Edge Higher, Boosted By a Weaker Dollar and Spending Cuts
Oil prices closed higher Thursday following two straight sessions of losses. A weaker U.S. dollar and spending cuts from oil industry companies helped U.S. crude futures end the session above $50 a barrel. Brent crude, the benchmark for global oil prices, added $2 to end at $57 a barrel for March 15 delivery on the London ICE Futures Exchange. Meanwhile, West Texas Intermediate crude, the benchmark for U.S. oil prices, added more than 2 percent to close at $51.21 a barrel for March 15 delivery on the New York Mercantile Exchange.
Wall Street's Day Ahead: Europe GDP
The European Union will release its initial gross domestic product figures Friday for the fourth quarter, as will Germany, the largest economy in Europe. Economists forecast Germany's economy expanded at a seasonally adjusted 0.3 percent rate in the fourth quarter of 2014 from 0.1 percent in the third quarter, according to analysts polled by Thomson Reuters. Wall Street expects the eurozone's economy expanded at a seasonally adjusted 0.2 percent rate in the fourth quarter, unchanged from the previous quarter.