US tech stocks jump as Microsoft buys Skype

NEW YORK—US shares pushed higher Tuesday after Microsoft’s $8.5-billion deal to buy Skype gave a strong bump to tech stocks.

The Dow Jones Industrial Average closed up 75.68 points (0.60 percent) at 12,760.36 in closing trade.

The broader S&P 500 index gained 10.87 (0.81 percent) at 1,357.16, while the tech-heavy Nasdaq Composite rose 28.64 points (1.01 percent) to 2,871.89.

Markets also got a boost from Chinese trade data showing the export sector in the world’s second largest economy was powering ahead despite government efforts to cool overall growth.

Microsoft announced it is buying Internet phone pioneer Skype from investor group Silver Lake for $8.5 billion cash, the Windows creator’s largest-ever acquisition.

Microsoft shares lost 0.6 percent on the news, but shares of eBay, which owns 30 percent of Skype, jumped 2.5 percent.

Nasdaq’s jump was driven by a 1.1 percent in Cisco and a 1.2 percent rise in Intel shares. Dell also picked up 1.4 percent.

Meanwhile US shares in Chinese social network leader Renren lost 8.0 percent to $14.75, just above their week-earlier IPO price of $14.

Boston Scientific led losers on the NYSE, dropping nine percent, after its chief executive of two years, Ray Elliott, said he would retire in December.

Bond prices fell. The yield on the 10-year Treasury note rose to 3.20 percent from 3.14 percent late Monday, while that on the 30-year bond rose to 4.33 percent from 4.30 percent.

Bond yields and prices move in opposite directions.