Stocks re­bound; tech­nol­ogy leads Nas­daq to record high

Austin American-Statesman - - BUSINESS - By Mar­ley Jay

Tech­nol­ogy com­pa­nies soared Thurs­day as ma­jor U.S. stock in­dexes re­cov­ered the ground they lost a day ear­lier. The Nas­daq com­pos­ite closed at an­other all-time high.

Big names like Ap­ple and Mi­crosoft and chip­mak­ers in­clud­ing In­tel all made big gains as in­vestors re­main op­ti­mistic about the tech­nol­ogy sec­tor even though much of the mar­ket has been shaken by es­ca­lat­ing ten­sions be­tween the U.S. and its trad­ing part­ners, es­pe­cially China.

In­dus­trial com­pa­nies also re­gained much of the ground they lost Wed­nes­day, but en­ergy com­pa­nies and basic ma­te­ri­als mak­ers failed to rally. De­fense con­trac­tors climbed af­ter Pres­i­dent Don­ald Trump ad­vo­cated for more de­fense spend­ing in the U.S. and Europe.

The S&P 500 in­dex rose 24.27 points, or 0.9 per­cent, to 2,798.29. The Dow Jones In­dus­trial Av­er­age rose 224.44 points, or 0.9 per­cent, to 24,924.89.

The Nas­daq jumped 107.30 points, or 1.4 per­cent, to 7,823.92. Its last record came on June 20.

The Rus­sell 2000 in­dex of smaller-com­pany stocks added 6.61 points, or 0.4 per­cent, to 1,690.28.

Soft­ware maker CA made the big­gest gain in the tech­nol­ogy sec­tor soared af­ter it ac­cepted an of­fer from Broad­com worth $18.9 bil­lion, or $44.50 per share. Its stock rock­eted 18.7 per­cent to $44.15. Broad­com in­vestors ex­pressed their dis­ap­proval of the deal, which in­volves Broad­com tak­ing on $18 bil­lion in debt. The stock dropped 13.7 per­cent to $209.98.

Broad­com’s mar­ket value fell by $14.4 bil­lion.

Pres­i­dent Trump con­tin­ued to crit­i­cize other NATO mem­bers at the group’s sum­mit in Brus­sels. He said Eu­ro­pean coun­tries should raise their de­fense spend­ing and sug­gested in a tweet that U.S. should also keep spend­ing more.

Sev­eral Eu­ro­pean lead­ers said NATO spend­ing plans haven’t changed.

Lock­heed Martin gained 2.2 per­cent to $313.31 and Raytheon rose 1.8 per­cent to $197.52.

The merry-go-round of po­ten­tial me­dia deals con­tin­ued as Com­cast of­fered to buy Eu­ro­pean pay-TV com­pany Sky for $34 bil­lion a day af­ter Twenty-First Cen­tury Fox in­creased its own of­fer for Sky.

Fox al­ready owns 39 per­cent of Sky, and while it tan­gles with Com­cast, Com­cast and Dis­ney are also try­ing to buy Fox it­self. Fox re­cently ac­cepted Dis­ney’s $71 bil­lion of­fer from Dis­ney. The New York Times re­ported Thurs­day that Com­cast will fo­cus on Sky and end its pur­suit of Fox.

Sky’s stock rose 3.4 per­cent in Lon­don. In the U.S., Com­cast rose 2.3 per­cent to $34.55 and Fox fell 0.9 per­cent to $47.38. Dis­ney gained 0.2 per­cent to $108.25.

Papa John’s In­ter­na­tional jumped 11 per­cent to $53.67 as founder John Sch­nat­ter re­signed as chair­man af­ter con­firm­ing a re­port that he had used a racial slur dur­ing a con­fer­ence call in May.

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