Nasdaq hits fresh high as stocks reverse course
U.S. stocks surged on Wednesday with the Nasdaq hitting a fresh record and the Dow Jones index up by 121 points.
The Nasdaq, which had dropped 1.1 per cent on Tuesday, jumped nearly 1.5 per cent or 73 points to end Wednesday at 5106.
Optimism that Greece would soon reach a deal on its debt seemed to be propelling trading, as well as a reaction to yesterday's downturn.
Apple and semiconductor stocks were up, while news that chip company Broadcom was in talks to be bought by Avago Technologies drove its stock up 22 per cent.
The Dow Jones industrial average rose 121.45 points, or 0.7 percent, to 18,162.99, but is still down on the week.
The Standard & Poor's 500 index closed up 19.28 points, or 0.9 percent, to 2,123.48.
Many analysts believe stocks are overvalued and there has been increased volatility as a move on interest rates approaches.
The Toronto stock market posted a solid advance Wednesday as the heavily weighted financial sector got a boost from Earnings turned in by Bank of Montreal and National Bank.
After a triple-digit pullback Tuesday, the S&P/TSX composite index closed up 59.66 points at 15,110.47. .
Allan Small, senior adviser at HollisWealth, said people have been "bashing the banks ... wondering, 'Where are the banks going to continue to make money from?"' in a low interest rate environment.
"But I think what these people fail to understand is that the banks now are moving into more of a wealth management style or model for themselves," he said.
"Charging that flat fee for a customer's portfolio is a great thing ... and I think that bodes well for their earnings this quarter and, going forward, the banks will be just fine."
The energy sector was the biggest drag on the TSX, down 0.73 per cent as the July oil contract retreated further from the $60-a-barrel mark, down 52 cents at $57.51 US.
