New York Report: Dow and S&P hit record highs on ECB’s easing

DOW JONES and the S&P 500 ended yesterday’s trading at record highs after the European Central Bank cut rates to record lows and pledged to do more if needed to fight off the risk of deflation.

The Dow rose 98.58 points or 0.59 per cent, to 16,836.11, the S&P 500 gained 12.58 points or 0.65 per cent, to 1,940.46 and the Nasdaq Composite added 44.59 points or 1.05 per cent, to 4,296.23. stock jumped 5.5 per cent to $323.57 amid revived speculation about its next major product, using a mysterious YouTube video and website post to tease a 18 June “launch event” in Seattle to be hosted by chief executive Jeff Bezos.

Shares in Ciena, the US-based global supplier of telecommunications networking equipment, software and services, jumped 18.4 per cent to $22.48 after the company posted earnings that beat expectations and gave a revenue outlook above forecasts.

However, shares in Sprint, the wireless and internet provider, fell four per cent to $9.02 after it agreed to pay about $40 per share to buy T-Mobile US, marking further progress in the attempt to merge the third and fourth-biggest US mobile network operators. T-Mobile US dropped 2.3 per cent to $33.49.

Pharmacy chain Rite Aid’s shares slid 7.4 per cent to $7.87 after it estimated first-quarter profit much below expectations.

Trading volume was around 5.91bn shares, slightly above last month’s average of 5.75bn.