Demand for technology stock boosts Wall Street

Dow Jones: 11,985.44 (+8.25) S&P 500: 1,296.63 (+5.45) Nasdaq: 2,739.50 (+20.25)THE S&P 500 closed at a 29-month high yesterday led by gains in technology and commodity shares, as investors largely ignored the US Federal Reserve's lukewarm economic assessment.

The stock market had little reaction to the Fed, which said high unemployment still justifies a $600 billion bond-buying program that has helped equities rally in the last few months.

Strong earnings continue to support further gains in stocks. The technology sector was led higher by network equipment maker Juniper Networks, whose quarterly sales beat Wall Street’s expectations. Shares rose 6.4 per cent to $37.05.

“We seem to have gone back to focusing on the basics – the economy and the earnings. Earnings are coming in good and the economy is taking baby steps forward,” supporting the stock market, said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.

“The technology sector especially is the leading sector in the broad market and its performance is impacting the rest of the market,” he said.

Commodity shares got a boost after Allegheny Technologies forecast stronger sales in 2011, helped by higher base prices for metals. The stock surged 11.8 per cent to $65.29.

The Dow Jones industrial average edged up 8.25 points, or 0.07 per cent, to end at 11,985.44.

The S&P’s 500 Index advanced 5.45 points, or 0.42 per cent, to 1,296.63.

The Nasdaq Composite Index gained 20.25 points, or 0.74 per cent, to 2,739.50.

The Dow rose above the psychologically important 12,000 for the first time since June 2008, but ended slightly lower as the 30-stock average was held in check by Boeing.

Boeing shares fell 3.1 per cent to $70.02 after the US aircraft maker posted a drop in quarterly profit and offered a poor forecast.

Fortinet shares jumped 16.9 per cent to $39.65 a day after the network security systems provider reported market-beating quarterly results.

New US single-family home sales rose in December to their highest level in eight months. The PHLX housing index advanced 1.2 per cent, with Hovnanian Enterprises adding 7.6 per cent to $4.80. – (Reuters)