By Dan Strumpf
The Nasdaq Composite Index breached its all-time closing high
for the first time in 15 years on Thursday, the latest push higher
for the technology-heavy index that has pulled ahead of the broader
market this year.
The index rose as much as 14.17 points, or 0.3%, to 5049.34 in
intraday trading, topping its all-time closing high of 5048.62 last
reached at the height of the dot-com bubble on March 10, 2000. The
Nasdaq remained below its all-time intraday high of 5132.52, also
set on March 10, 2000.
The latest rise follows several stalled attempts to surpass the
index's high-water mark in recent months. The Nasdaq surpassed 5000
in early March, but fell in subsequent weeks amid a cloudy
first-quarter earnings season and hiccups in the U.S. economy.
While the Dow Jones Industrial Average and the S&P 500 have
notched dozens of new records in recent years, the Nasdaq has taken
much longer to recover from the dot-com bust. The landscape for
technology stocks in the last 15 years is much changed, with
stalwarts like Google Inc. and Apple Inc. replacing the hot
Internet startups that dominated the Nasdaq in 2000.
The Nasdaq's rise comes against a backdrop of renewed worries
over the slowing pace of U.S. economic growth and hiring, and
concerns over the prospect of interest-rate increases by the
Federal Reserve, expected later this year. In Europe, new stimulus
efforts by the European Central Bank and signs of renewed growth
have cheered investors, but Greece's fiscal troubles continue to
cast a shadow over the continent.
The Nasdaq, along with other major indexes, turned higher at
midday, reversing early losses. The Dow Jones Industrial Average
rose 47 points, or 0.3%, to 18085. The S&P 500 rose six points,
or 0.3%, to 2114.
Investors scrutinized first-quarter earnings reports.
Shares of General Motors Co. fell 3.3% after the auto maker
reported a $945 million net profit in the first quarter, but its
operating performance fell short of expectations.
Procter & Gamble Co. stock lost 1% after the consumer
products maker said sales fell 7.6% in the March quarter due to the
strong dollar
Shares of AT&T Inc. gained 4% after first-quarter earnings
fell but still came in better than expectations.
"We know it's not easy for U.S. corporations to increase
earnings meaningfully at this point in the cycle," said Dan Morris,
global investment strategist at TIAA-CREF, which manages $611
billion. Companies had been looking to sell more products in
Europe, where the European Central Bank is attempting to kick-start
growth, he said. "That was one of your bright spots, and that
bright spot just got a little less bright," he added.
In Europe, Germany's DAX fell 1.3% and France's CAC 40 lost
0.8%.
In economic news, U.S. jobless claims rose by 1,000 to 295,000
in the week ended April 18, the Labor Department said Thursday.
Economists surveyed by The Wall Street Journal expected 290,000
claims.
Write to Dan Strumpf at daniel.strumpf@wsj.com
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