US stocks rose on Monday, with Verizon boosting the telecoms sector after the stock got an upgrade, while a deal in semiconductors lifted high-performing tech shares, Reuters reports.
With no major earnings or economic data scheduled this week, trading volumes were thin and expected to get even quieter leading up to the Thanksgiving holiday on Thursday and an early market close on Friday.
Overall trading volume was the lightest in a month.
Verizon boosted the telecom services sector of the S&P 500 with a 1.7 percent advance to US$46.20 after a Wells Fargo note highlighted the stock’s valuation and said it is “an attractive yield play”.
Telecoms are down 17 percent this year, compared with a 15 percent advance on the S&P 500.
“There’s a bounce in telecoms, which have been the worst group so far this year,” said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago.
“There’s always a chance that something disrupts the apple cart, but there’s very little news and a lot of people focusing on the football games and the turkey dinner,” he said, referring to the staples of the US Thanksgiving holiday.
Cavium touched a record high of US$84.41 after larger rival Marvell said it would buy the company for about US$6 billion. Cavium shares were last up 10.8 percent at US$84.02 and Marvell shares rose 6.4 percent to $21.59.
The Dow Jones Industrial Average rose 72.09 points, or 0.31 percent, to 23,430.33, the S&P 500 gained 3.29 points, or 0.13 percent, to 2,582.14 and the Nasdaq Composite added 7.92 points, or 0.12 percent, to 6,790.71.
Small cap stocks on the Russell 2000 rose 0.7 percent, outperforming the large-cap indices.
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