By Angela Moon
NEW YORK, Nov 5 (Reuters) - U.S. stocks jumped on Thursday
after strong results from Cisco lifted technology stocks, and
an expansion in business productivity and a fall in jobless
claims encouraged investors about the economy.
Technology bellwether Cisco shares shot up 2.5
percent to $23.87 after the company reported earnings after
the bell on Wednesday. Its quarterly revenue rose more than
expected, and its board authorized up to $10 billion in stock
buybacks. For details, see
U.S. non-farm productivity rose more than expected in the
third quarter as companies squeezed more output from a smaller
pool of labor, while fewer U.S. workers filed new jobless
insurance claims than forecast last week -- hitting a 10-month
low.
"Cisco results are being taken seriously by Wall Street
and it has confirmed the strong upward trend ... their
positive outlook and good access to the global environment is
helping the overall market," said Brad Sorensen, director of
market analysis at the Schwab Center for Financial Research.
The Dow Jones industrial average ran up 181.98
points, or 1.86 percent, at 9,984.12. The Standard & Poor's
500 Index was up 17.31 points, or 1.65 percent, at
1,063.81. The Nasdaq Composite Index was up 46.35
points, or 2.25 percent, at 2,101.87.
Other technology stocks also advanced. Intel Corp
gained 2 percent to $18.96 and Microsoft rose 2.1
percent to $28.66.
Shares of IMS Health Inc soared 23.8 percent to
$20.81 after the company agreed to be bought by TPG and CPP
Investment board. The deal was valued at $5.2 billion,
including the assumption of debt.
But CVS Caremark Corp tumbled 20.4 percent to
$28.76 after comments from Chief Executive Tom Ryan on
weakness in the pharmacy benefit management business.
U.S. retail chains reported October sales that rebounded
from the lows of a year ago, but many failed to surpass Wall
Street's increased expectations as consumers spend selectively
headed into the holiday season. The S&P retail index
rose 1.9 percent.
(Reporting by Angela Moon, Editing by Jan Paschal)
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(angela.moon@thomsonreuters.com;+1 646 223 5685; Reuters Messaging:angela.moon.reuters.com@reuters.net)
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