Nasdaq Surges To New Record Closing High But Dow Closes Little Changed

(RTTNews) - After ending the previous session sharply lower, stocks showed a strong move back to the upside during trading on Thursday. Technology stocks led the rebound on Wall Street, with the tech-heavy Nasdaq surging to a new record closing high.

The Nasdaq pulled back off its highs of the session going into the close but still ended the day up 271.84 points or 1.7 percent at 16,442.18. The S&P 500 also climbed 38.42 points or 38.42 points or 0.7 percent to 5,199.06, but the narrower Dow edged down 2.43 points or less than a tenth of a percent to 38,459.08.

The rally by the Nasdaq and S&P 500 in afternoon trading seemed to coincide with the release of the results of the Treasury Department's auction of $22 billion worth of thirty-year bonds, which revealed the sale attracted average demand.

The thirty-year bond auction drew a high yield of 4.671 percent and a bid-to-cover ratio of 2.37, while the ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.39.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Treasury yields pulled back off their highs following the release of the results, with the yield on the benchmark ten-year note giving back ground after reaching a high near 4.60 percent.

The Treasury revealed below average demand for this month's three-year and ten-year note auctions earlier in the week.

Earlier in the day, stocks showed a lack of direction as traders weighed today's relatively tame producer price inflation data against yesterday's hotter-than-expected consumer price inflation data.

Before the start of trading, the Labor Department released a report showing producer prices increased in line with economist estimates in the month of March.

The Labor Department said its producer price index for final demand crept up by 0.2 percent in March after climbing by 0.6 percent in February. The uptick matched expectations.

Meanwhile, the report said the annual rate of producer price growth accelerated to 2.1 percent in March from 1.6 percent in February.

The annual rate of growth was the fastest since surging 2.3 percent last April but came in slightly slower than the 2.2 percent jump forecast by economists.

The producer price inflation data came after the Labor Department released a separate report on Wednesday showing consumer prices rose by slightly more than expected in March.

The report also said the annual rate of consumer price growth accelerated to 3.5 percent in March from 3.2 percent in February. Economists had expected a more modest acceleration to 3.4 percent.

Sector News

Semiconductor stocks moved sharply higher over the course of the session, driving the Philadelphia Semiconductor Index up by 2.4 percent.

Considerable strength also emerged among computer hardware stocks, as reflected by the 1.7 percent gain posted by the NYSE Arca Computer Hardware Index.

Gold stocks also turned in a strong performance amid an increase by the price of the precious metal, with the NYSE Arca Gold Bugs Index climbing by 1.4 percent.

Transportation, networking and software stocks also saw some strength on the day, while banking and oil service stocks moved to the downside.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan's Nikkei 225 Index fell by 0.4 percent, while China's Shanghai Composite Index edged up by 0.2 percent.

Meanwhile, the major European markets all moved to the downside on the day. While the German DAX Index slumped by 0.8 percent, the U.K.'s FTSE 100 Index slid by 0.5 percent and the French CAC 40 Index dipped by 0.3 percent.

In the bond market, treasuries fluctuated over the course of the session before closing slightly lower. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, crept up by 1.6 basis points to a nearly five-month closing high of 4.576 percent.

Looking Ahead

A report on import and export prices may attract attention on Friday along with a report on consumer sentiment that includes readings on inflation expectations.

Earnings news may also move into the spotlight, with financial giants Citigroup (C), JPMorgan Chase (JPM) and Wells Fargo (WFC) due to report their quarterly results before the start of trading.