Dow, Nasdaq Post Strong Finish to Close Higher

(Updated from 3:47 p.m. EDT)

Equities finished the day higher, but the major averages remained off their highs for the session. The Dow gained 41.17 points, or 0.39%, to 10,551.18. The Nasdaq closed up 18.99 points, or 0.92%, to 2087.37, and the S&P 500 finished ahead by 4.81 points, or 0.40%, to 1220.74.

Lucent(LU) was the most active stock on the New York Stock Exchange , trading up 18 cents, or 2.94%, to $6.31.

PMC-Sierra(PMCS) jumped to $3.46, or 10.4%, to $36.80 after being added to the S&P 500. The company will replace Quaker Oats (OAT) after the close today.

Chip heavyweight Intel(INTC) was also active, rising $1.36, or 4.42%, to $32.11. The company said it expects PC demand to strengthen in the second half.

Global Crossing(GX) was on the move, trading down $1.32, or 18.9%, to $5.68. The company said Wednesday after the close that it would cut its workforce by 2,000 jobs and close some of its plants in an attempt to reduce costs.

At 8:30 a.m. EDT, the weekly initial jobless claims report was released, showing that the number of claims dropped to 346,000 for the week ended July 28. Economists were expecting the number of claims to rise to 385,000.

Chips continue their strong run, while biotech stocks have sold off dramatically today.

The 10-year benchmark Treasury note was recently down 15/32 to 98 31/32, yielding 5.136%.

In overseas activity, European stocks traded higher as technology stocks continue to outperform. London's FTSE 100 Index was up 38 points, or 0.68%, to 5584 following a surprise rate cut by the Bank of England. In Japan, the semis benefited from yesterday's Merrill Lynch upgrade. The Nikkei 225 traded up 440 points, or 3.68%, to 12,399. In Hong Kong, the Hang Seng fell 12 points, or 0.1%, to 12,466.

>To order reprints of this article, click here: Reprints