Nasdaq closes above 4,000 for first time in 13 years

The Nasdaq composite index closed above 4,000 on Tuesday for the first time since 2000, while the Dow and S&P ended barely changed.

Retailers and homebuilders were among the best performing sectors, responding to stronger-than-expected earnings and robust housing market data.

Big-cap technology stocks helped the Nasdaq the most on Friday to finish above 4,000 for the first time since the dot-com bubble burst in 2000 and sent the tech-heavy index hurtling.

Tiffany & Co jumped 7% to $88.02 and was the S&P 500's top performer after the luxury retailer's third-quarter sales topped expectations. The S&P retail index advanced 0.9%.

 

"The wealth effect because the stock market has gone up has definitely helped the upper-end folks," said Gary Bradshaw at Hodges Capital Management in Dallas, Texas.

Moreover, Bradshaw said gasoline prices were giving a potential boost to broad-based holiday spending. Wal-Mart Stores Inc shares rose 0.3% to close at an all-time high of $80.86 a day after the retailer named a new chief executive.

Jos. A. Bank Clothiers Inc surged 11.2% to $56.29 after Men's Wearhouse offered to buy the company for $55 per share in cash, a 9% premium to its Monday close. Men's Wearhouse jumped 7.5% to $50.60.

On the Nasdaq, Apple Inc gained 1.8% to $533.40, Google Inc rose 1.2% to $1,058.41 and Amazon.com Inc shares ended up 1.3% to $381.37.

The PHLX Housing Index rose 2.5% after stronger-than-expected figures on building permits for October and a steady rise in housing prices. Ryland Group led the index, gaining 5.6% to $40.02 a share.

Permits for future US home construction hit a 5-1/2 year high and an index of single-family home prices notched big gains in September.

"The takeaway here is that the whole partial government shutdown thing was a real non-event," said Jay Mueller, senior portfolio manager for Wells Capital Management.

The Dow Jones industrial average ended up 0.26 point to 16072.80. The Standard & Poor's 500 Index <.SPX> gained 0.27 point, or 0.01%, to 1,802.75. The Nasdaq Composite Index rose 23.18 points, or 0.58%, to 4,017.75.

The S&P 500 has risen nearly 27% this year, primarily bolstered by expectations the Federal Reserve's stimulus will continue at least until the end of the year.

The Walt Disney Company led the Dow in%age gain, with shares rising 2.1% to $71.18. The company announced better-than-expected earnings earlier in the month.

Trading is expected to remain light this week, with financial markets closed Thursday for the Thanksgiving holiday. Markets will also close early at 1 p.m. (1800 GMT) on Friday.