US stocks ended sharply higher today, with a rally in technology stocks leading the Nasdaq to a 15-year high, while a ceasefire agreement between Russia and Ukraine also eased tensions.
The day’s gains were broad, with eight of the 10 primary S&P 500 sectors rising, and the S&P information technology sector rose 1.6 percent in its third straight daily advance. Cisco Systems climbed 9.4 percent to $29.46 in the network equipment maker’s biggest one-day jump since May 2013 after earnings and revenue beat expectations.
TripAdvisor Inc soared 22.5 percent to $82.40 a day after revenue topped forecasts. Fellow online travel company Expedia jumped 14.5 percent to $89.57. Earlier, Expedia agreed to buy Orbitz Worldwide for about $1.33 billion.
With 76 percent of the S&P 500 having reported, about 71.4 percent of companies have topped earnings expectations, according to Thomson Reuters data, while 56.8 percent have topped on revenue. That compares to the long-term average of 63 percent for earnings and 61 percent for revenue.
Overseas, leaders of Germany, France, Russia and Ukraine agreed a deal to end fighting in eastern Ukraine, potentially removing a concern for global investors, although the pact remained fragile. The news contributed to oil prices advancing 4.9 percent, which in turn lifted the S&P energy index 1.3 percent.
The Dow Jones industrial average rose 110.24 points, or 0.62 percent, to 17,972.38, the S&P 500 gained 19.95 points, or 0.96 percent, to 2,088.48, and the Nasdaq Composite added 56.43 points, or 1.18 percent, to 4,857.61.
The Nasdaq ended at its peak of the session, the highest level for the index since March 2000, while the S&P 500 ended about 0.1 percent below closing record, set on Dec. 29.
European stocks hit multi-year highs, also boosted by the Ukraine peace agreement, Swedish economic stimulus measures and as investors held out hope for a Greek debt deal.
Germany’s DAX — which includes companies that sell cars and other products to Russia — rose 1.6 percent to approach its earlier record highs, while France’s CAC climbed 1 percent to its best level in about seven years.
Sweden’s benchmark OMXS30 equity index also hit a record high after the country’s central bank moved its key interest rate into negative territory and launched bond purchases in a process known as «quantitative easing» (QE) to bolster its economy.
The pan-European FTSEurofirst 300 index rose 0.6 percent to 1,493.22 points, near its best level in seven years.
The Greek stock market jumped 6.7 percent, with the banking index surging 14.1 percent after the European Central Bank approved extra emergency finance for Greek banks.
Greece and its international creditors failed to agree a way forward on Greece’s debt crisis but they will meet and try again on Monday, offering investors hope that they can reach an agreement.
In Asia, Japan’s Nikkei share average ended at its highest level in more than 7-1/2 years as the weak yen boosted exporters such as Toyota Motor Corp and Sony Corp, while investors awaited the outcome of Greek debt negotiations.
The Nikkei benchmark gained 1.9 percent to 17,979.72, the highest closing level since July 2007. Fanuc Corp soared 6.2 percent and hit a record high after the Nikkei business daily reported that Third Point bought a stake in the industrial robot maker.
It contributed a hefty 51.36 points to the Nikkei benchmark, or more than 15 percent of the Nikkei’s point gains.
The broader Topix rose 1.5 percent to 1,449.39, with 2.77 billion shares changing hands, the biggest number since December 12. Turnover was 3.160 trillion yen ($26.30 billion), the highest since the same date.
The JPX-Nikkei Index 400 added 1.5 percent to 13,136.59.
Source: Buenos Aires Herald