American flags fly in front of the New York Stock Exchange, in New York. US stocks posted solid gains Thursday, rallying on news of a ceasefire in Ukraine as strong earnings from Cisco lifted the technology sector. AP PHOTO/MARK LENNIHAN
NEW YORK–US stocks posted solid gains Thursday, rallying on news of a ceasefire in Ukraine as strong earnings from Cisco lifted the technology sector.
The Dow Jones Industrial Average advanced 110.24 points (0.62 percent) to 17,972.38.
The broad-based S&P 500 jumped 19.95 (0.96 percent) to 2,088.48, while the tech-rich Nasdaq Composite Index surged 56.43 (1.18 percent) to 4,857.61.
The US gains followed a strong day for European equities after the announcement of a peace roadmap between Kiev and pro-Russian rebels. Still Ukrainian President Petro Poroshenko and others cautioned that implementing the agreement would not be easy.
Dow component Cisco jumped 9.4 percent after reporting that second-quarter earnings surged 68 percent to $2.24 billion. Other tech names to rise included Apple (+1.2 percent) and Google (+1.3 percent).
The gains came despite data showing US retail sales fell 0.8 percent in January and that unemployment claims rose last week above the 300,000 line.
Large banks advanced, with Dow component JPMorgan Chase rising 2.1 percent and Citigroup tacking on 2.4 percent. Oil giant ExxonMobil rose 2.0 percent and oil-services titan Schlumberger advanced 1.5 percent as crude prices rose.
Online travel company Expedia jumped 14.5 percent on news it will buy rival Orbitz Worldwide for about $1.6 billion in a move that further consolidates the sector. Orbitz bolted 21.8 percent higher.
TripAdvisor, another online travel site, jumped 22.5 percent after reporting an 80 percent rise in fourth-quarter net income to $36 million.
Priceline, another online travel site, gained 3.0 percent.
Dow component American Express sank 6.4 percent on news its venture to provide exclusive credit cards at Costco Wholesale stores would end in March 2016. American Express sought to extend the venture, but said it was “unable to reach terms that would have made economic sense for our Company and shareholders.” Costco rose 0.2 percent.
Electric-car maker Tesla Motors fell 4.6 percent as it reported a fourth-quarter loss of $107.6 million, compared with a loss of $16.3 million a year ago. The results were dragged down by delays in auto deliveries.
Cybersecurity firm FireEye jumped 11.0 percent as it projected 2015 sales of $600-$625 million, compared with $425.7 million in 2014.
Bond prices were mixed. The yield on the 10-year US Treasury fell to 1.99 percent from 2.00 percent Wednesday, while the 30-year held steady at 2.57 percent. Bond prices and yields move inversely.