Big name technology stocks managed to carry the Nasdaq to another record high, though the overall market remained tepid in the face of a strong job growth.
The tech-laden Nasdaq Composite Index rose 93.11 to 3,715.06, the S&P 500 inched up 5.59 to 1,418.78, and the Dow Jones Industrial Average moved up 19.57 to 11,244.89. Inter@ctive Week's @100 Index advanced 114.57 to 6,125.56.
In a sign the job market continues strong, the number of Americans filing new claims for unemployment insurance dropped by 29,000 last week to the lowest since 1973.
First-time claims for state unemployment benefits dropped to 266,000 in the week ended Dec. 11 from 295,000 in the previous week and its lowest level since a matching 266,000 in the week of Dec. 8, 1973, the Labor Department said.
"The jobless claims were at the lowest since 1973, which put the pressure on the bond market, so we continue to take profits on some of these stocks," said James Volk, co-director, institutional trading, D.A. Davidson & Co. "I think people are in the profit-taking mode but want to stay fully invested," he said.
Internet investment company CMGI (Nasdaq: CMGI) gained 21 13/16 to 221 9/16 after announcing plans for a stock split. The company also reported rising second quarter revenues.
Internet Capital Group (Nasdaq: ICGE), another Internet incubator, picked up 4 1/4 to 112 3/8 on news it would get a $50 million investment from Ford Motor Company.
On the IPO front, Infonet Services (Nasdaq: IN) advanced 4 1/8 to 25 1/8 after pricing 51.3 million shares of its stock at $21 each. Xpedior (Nasdaq: XPDR) rose 7 to 26 following its IPO. The Internet services company offered more than 8.5 million shares at $19 apiece.
Microsoft Corp. (Nasdaq: MSFT) increased 5 1/4 to 113 11/16. The software company inked an Internet and marketing alliance with Best Buy Co. (NYSE: BBY), up 2 to 49 1/4, and plans to buy $200 million worth of Best Buy common stock.
eShare Technologies (Nasdaq: ESHR) went up 8 11/16 to 17, piggybacking on a deal with America Online whereby the Internet giant will use eShare's customer care products.
Ariba, Inc. (Nasdaq: ARBA) leapt 13 1/2 to 237 1/2 after it said Thursday it will acquire privately held Tradex Technologies, Inc., which provides a business-to-business trading platform, in a stock-swap deal valued at $1.86 billion.
America Online and Wal-Mart Stores have signed a wide-ranging marketing deal that includes the creation of a co-branded, low-cost Internet service. AOL (NYSE: AOL) slid 4 3/16 to 85 7/16. Yahoo! Inc. (Nasdaq: YHOO), up 13 1/2 to 341, has signed a similar deal with Kmart Corp.
Liberty Media Corp. (NYSE:LMGa) moved up 1 3/8 to 48 after announcing a plan to $400 million in conglomerate Cendant Corp. (NYSE: CD) to develop Internet opportunities in the travel, mortgage, real estate and membership businesses. Shares of Cendant rose 6 3/16 to 22 5/8.
Corel (Nasdaq: CORL) gained 1 3/16 to 23 7/8. The software vendor agreed to develop Linux applications that support sound cards and other multimedia devices made by Creative Technology (Nasdaq: CREAF), which advanced 1 1/4 to 18 3/4.
Emulex (Nasdaq: EMLX) rose 1 11/16 to 85 1/8. The maker of products for fibre channel storage networks was scheduled to carry out a 2-for-1 stock split after market close.>