Nasdaq finally notches a new closing high
NEW YORK - The Nasdaq composite has closed at a record high for the first time since the dot-com bubble of 2000.
The index gained 21 points, or 0.4 percent, to close at 5,056 Thursday, beating its previous closing high by eight points. The new mark is actually a nominal record because isn't adjusted for inflation since 2000. The Nasdaq would need to reach around 6,900 for it to be a record in inflation-adjusted terms.
The Dow Jones industrial average rose 20 points, or 0.1 percent, to 18,058. And the Standard & Poor's 500 rose four points, or 0.2 percent, to close at 2,112, just below its own record set last month.
The Nasdaq composite tracks all stocks listed on the Nasdaq Stock Market, a rival to the New York Stock Exchange.
After a sluggish morning, the Nasdaq moved above its record close of 5,048.62 from March 2000 shortly before noon. In afternoon trading the index was up 30 points, or 0.6 percent, at 5,066, before closing at 5,056.
A lot has changed since the dot-com era, when the index was more heavily weighted with technology and telecom companies. These days, biotechnology and consumer services companies make up significant parts of the index.
Energy stocks were among Wall Street's biggest gainers on Thursday as the price of oil rose, and several export-heavy companies reported their results Thursday. All of them said the strong U.S. dollar hurt results.
Among the companies feeling the effects were consumer products giants Procter & Gamble (PG) and 3M (MMM). Earnings at P&G were down roughly 8 percent from a year earlier, due largely to the U.S. dollar, which makes its products more expensive when sold abroad.
Caterpillar (CAT) closed down 8 cents, or 0.1 percent, to $84.79. While the company reported a better-than-expected profit for last quarter, it said it may face bigger issues later this year as long as the dollar remains strong.
"The results have been pretty consistent this earnings season. If you're an export-heavy company, your results have suffered from a strong dollar," said Randy Frederick, managing director of trading and derivatives for Charles Schwab.