US technology stocks rose on Wednesday after strong earnings from computer maker Dell Inc. The Dow ended slightly higher as restructuring news from Alcoa Inc offset a drop in General Motors Corp's stock after financier Kirk Kerkorian cut his stake in the automaker.
A slide in crude oil prices hit energy stocks like Exxon Mobil Corp, which also limited the Dow's gain. The Nasdaq advanced to a fresh 5 1/2-year high at 2,467.20, while the S&P 500 hit a six-year high of 1,407.89 and the Dow rose to a fresh all-time intraday high of 12,361.00.
Trading volume was light before Thursday's Thanksgiving holiday, when US financial markets will be closed. The Dow Jones industrial average gained 5.36 points, or 0.04 percent, to end at 12,326.95. The Standard & Poor's 500 Index added 3.28 points, or 0.23 percent, to finish at 1,406.09. The Nasdaq Composite Index climbed 11.14 points, or 0.45 percent, to close at 2,465.98.
"There was not a lot of activity today so you kind of need to take your breath and take stock of things," said Hans Olsen, chief investment officer at Bingham Legg Advisers in Boston. "If you look back through industries in general for the third quarter, the healthy earnings participation of companies was broad and deep. Dell was simply the most recent example of that."
Shares of Dell shot up 9.3 percent, or $2.31, to $27.13, making the No 2 personal computer maker the top positive influence on both the Nasdaq and the S&P 500. Dell's quarterly earnings beat analysts' estimates as it sold more laptops and increased sales in China and Europe. The Dow's biggest boost came from Alcoa, up 4.3 percent, or $1.24, at $30.43 on the New York Stock Exchange. Late on Tuesday, the aluminium producer had announced a restructuring plan and layoffs.
Helping the tech sector was a 17.1 percent surge in shares of Cray Inc, which gained $1.70 to close at $11.62 on Nasdaq after news that the company won part of a large government contract for a supercomputer project. GM's decline curbed the Dow's advance after Tracinda Corp, Kerkorian's investment firm, said it had cut its stake in the automaker to 7.4 percent from 9.9 percent. That disappointed GM's shareholders, who had hoped Kerkorian's influence would help the automaker.
Shares of GM, which were the heaviest weight on the blue chip Dow, slid 4.7 percent, or $1.53, to close at $31.09 on the New York Stock Exchange.
A steep decline in oil futures prices gave investors a reason to unload some shares in the energy sector, driving Exxon Mobil Corp down 0.7 percent, or 48 cents, to $72.91 on the NYSE. Exxon Mobil was the biggest drag on the S&P 500 and among the Dow's biggest losers.
In Nasdaq trading, shares of IAC/InterActiveCorp rose almost 5 percent, or $1.66, to $35.43 after Standard & Poor's said the company's stock, along with the shares of DirecTV Group Inc and Questar Corp would be added to the S&P 500 Index.
Trading was light on the New York Stock Exchange, with 1.34 billion shares changing hands, below the 1.61 billion daily average for last year. On Nasdaq, about 1.62 billion shares were traded, below the 1.80 billion daily average last year.
Advancing shares beat decliners by about 8 to 5 on the NYSE, but kept equal pace with each other on the Nasdaq. A total of 1,498 Nasdaq shares gained, while 1,501 shares declined. On Friday, the US stock market will be open for a shortened trading day with a closing time scheduled at 1 pm (1800 GMT).
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