Nasdaq snaps losing streak, leads market higher
Specialist Jason Hardzewicz, left, works at his post on the floor of the New York Stock Exchange on Tuesday, April 8, 2014. The tech-rich Nasdaq Composite Index rallied Tuesday, leading the market to its first day of gains after three straight losses. AP
NEW YORK—The tech-rich Nasdaq Composite Index rallied Tuesday, leading the market to its first day of gains after three straight losses.
The Nasdaq jumped 33.23 (0.81 percent) to 4,112.99.
The Dow Jones industrial Average advanced 10.27 (0.06 percent) to 16,256.14, while the broad-based S&P 500 rose 6.92 (0.38 percent) to 1,851.96.
Analysts said it was too soon to say if Tuesday’s rally meant the tech sector had stabilized.
Nasdaq has been in retreat since early March due to concerns Facebook, Tesla Motors and other high-flying stocks are overvalued.
The Nasdaq has lost 5.5 percent of its value since March 6. Over the same period, the Dow fell 1.0 percent and the S&P 500 lost 1.3 percent.
Art Hogan, chief market strategist at Wunderlich Securities, said the tech sector had become “oversold.”
Enjoying the rebound Tuesday were Facebook (+2.2 percent), Tesla (+3.8 percent), Amazon (+2.9 percent) and Google (+3.1 percent).
But biotechnology stocks, which have experienced some of the heaviest selling over the past two weeks, continued to show weakness. Gilead Sciences fell 3.1 percent and Biogen dropped 2.8 percent.
Nike led the Dow higher, rising 3.0 percent after it was upgraded by Stifel Nicolaus.
Chipmaker Intel reportedly will shut its Costa Rica plant, eliminating 1,500 jobs. Shares rose 1.6 percent.
Pharmaceutical giant Eli Lilly slipped 0.1 percent following a big punitive-damages award against the company and its Japanese partner Takeda Pharmaceuticals for hiding the cancer risks of the Actos drug for diabetes.
A jury found Takeda owes $6 billion in punitive damages and Lilly owes $3 billion. But Lilly said its agreement with Takeda indemnifies it against losses in the US litigation. Both companies plan to contest the award.
Bond prices rose. The yield on the 10-year US Treasury declined to 2.68 percent from 2.70 percent Monday, while the 30-year dipped 3.54 percent from 3.56 percent. Bond prices and yields move inversely.
