Nasdaq closes at new record high
NEW YORK–The Nasdaq plowed to a fresh record Monday as US stock markets followed European equity markets higher on increased optimism for a deal that could avert a Greek default.
The tech-rich Nasdaq Composite Index was at 5,153.97, up 36.97 points (0.72 percent), besting the prior record set June 18 by 21 points.
The Dow Jones Industrial Average rose 103.83 (0.58 percent) to 18,119.78, while the broad-based S&P 500 advanced 12.86 (0.61 percent) to 2,122.85.
Earlier, equity markets in Europe surged after eleventh-hour reform proposals from Greece to international creditors lifted hopes of a deal. European Union President Donald Tusk said the offers were the “first real proposals for many weeks” from the Greek government.
“It looks like Greeks are going to give ground on actions on spending and it may just be enough to get to the finish line,” said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.
Health insurer Cigna bolted 4.7 percent higher as it rejected as “inadequate” a bid from the nation’s No. 2 insurer Anthem. Anthem estimated the deal was worth $53.8 billion, including debt. Anthem rose 3.6 percent.
Aetna, another leading insurer seen as a possible merger partner, gained 3.2 percent. But Humana fell 6.1 percent as some analysts worried Humana could be left without a merger partner amid a wave of consolidation.
Pipeline company Williams surged 25.9 percent to $60.86 after it rejected a $64 a share takeover offer from Energy Transfer Equity, saying it “signficantly undervalues” the company.
Athletic apparel company Under Armour jumped 2.1 percent after 21-year-old golfer Jordan Spieth, who dons the brand, became on Sunday the youngest US Open champion since 1923.
Martha Stewart Living Omnimedia fell 12.3 percent on news it will be acquired by Sequential Brands Group for $353 million. Sequential dropped 1.1 percent.
Dow member Disney advanced 0.8 percent following a strong opening weekend for its Pixar unit’s latest animated movie, “Inside Out.” Comcast also gained 0.8 percent after “Jurassic World,” a product of Comcast’s Universal Studios, continued to dominate the box office.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.38 percent from 2.27 percent Friday, while the 30-year advanced to 3.17 percent from 3.05 percent. Bond prices and yields move inversely.
