Dow gets boost from technology stocks

NEW YORK (AP) — US stocks ended the day with modest gains. Cisco Systems Inc. led the 30 companies in the Dow Jones industrials Wednesday after the CEO promised to take “bold steps” to narrow the company’s focus.

CEO John Chambers said in a memo to employees that recent missteps were “unacceptable” and promised major changes. Cisco rose five percent.

Other technology companies made gains. Hewlett-Packard Co., Microsoft Corp. and chipmaker Qualcomm Inc. were all higher.

The Dow Jones industrial average rose 32.85 points, or 0.3 percent, to 12,426.75.

The S&P 500 index edged up three points to 1,335. The Nasdaq composite index rose nine points, or 0.3 percent, to 2,800.

More than four stocks rose for every three that fell on the New York Stock Exchange. Trading volume was four billion shares.

Meanwhile, European stock markets closed firmer Wednesday, finding support in solid corporate news as investors kept close watch on sky-high oil prices ahead of an expected eurozone interest rate hike.

Dealers said the underlying tone was positive — the global economic recovery remains intact, with the United States picking up nicely, and that is enough to offset concerns over Middle East unrest and higher oil prices.

The markets appear to have fully discounted an expected European Central Bank rate hike to 1.25 percent from the record low one percent where they have been since May 2009 in an effort to bolster the economy.

Dealers said even the situation in Portugal, which looks increasingly likely to have to ask for an international bailout, also seems to have been priced in.

In London, the FTSE 100 index of leading shares closed up 0.57 percent at 6,041.13 points. In Paris, the CAC 40 edged up 0.16 percent to 4,048.16 points while in Frankfurt the DAX gained 0.55 percent to 7,215.11 points

“The FTSE seems to be carrying on regardless even though oil remains firmly above $120 a barrel,” said Simon Denham at trading group Capital Spreads.

“Recent weeks have been a struggle for retailers in particular and the market is focusing on High Street bellwether Marks & Spencer who released the best news the sector has had for a while.”

M&S topped the gainers list, adding 5.10 percent after the clothing-to-food retailer said group sales rose 2.3 percent in its fourth quarter.