Nasdaq rallies, Dow hits trading high as investors shake off unsettling news from North Korea, cheer Google deal.
By Jessica Seid, CNNMoney.com staff writer October 9 2006: 5:32 PM EDT
NEW YORK (CNNMoney.com) -- Stocks rebounded Monday, led by technology shares, after news that Google plans to buy YouTube overshadowed higher oil prices and reports of North Korean nuclear tests.
The Dow Jones Industrial averaged (up 7.60 to 11,857.81, Charts) a few points higher but ended just shy of the record close of 11,866.69 set last Thursday.
The world's most widely watched stock market gauge climbed as high as 11,872.94 during the session, eclipsing the record trading high of 11,870.06, also set last Thursday.
Of the 30 blue chips in the Dow, 15 rose and 15 fell.
The broader S&P 500 (up 1.08 to 1,350.66, Charts) index rose nearly 0.1 percent while the tech-fueled Nasdaq composite (up 11.78 to 2,311.77, Charts) climbed 0.5 percent.
All three major gauges were lower earlier in the session after reports that North Korea claimed it conducted a successful underground nuclear test Monday, according to the country's official Korean Central News Agency. (Full story.)
Also contributing to early losses, light sweet crude oil for November delivery jumped over a dollar a barrel before settling up 20 cents at $59.96 on the New York Mercantile Exchange.
Stocks rebounded by the afternoon as investors turned their attention to several key corporate deals in the works. Trading volume, however, remained very light due to the Columbus Day holiday.
"It's a quiet day in the market so I wouldn't necessarily read a lot into [today's] action," cautioned Michelle Clayman, chief investment officer at New Amsterdam Partners.
On Tuesday investors will be focused on August's report on wholesale inventories and earnings from Dow component Alcoa (up $0.25 to $27.99, Charts).
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