U.S. tech stocks climb on Google's YouTube deal
Google shares rose to their highest in more than five months ahead of the Internet search company's announcement after the closing bell that it would pay $1.65 billion in stock for YouTube.
While shares of the acquiring company usually drop following a takeover announcement, Google stock's rose in extended trading, suggesting investors believe the deal is attractive.
"This is a very good move for Google strategically as it opens to them the possibility to grow in one Internet area where they were not very big -- that is, video," said Steve Neimeth, portfolio manager for AIG SunAmerica Asset Management in Jersey City, New Jersey.
The Dow Jones industrial average gained 7.60 points, or 0.06 percent, to close at 11,857.81, after climbing to an intraday record at 11,872.94 during the session. The Standard & Poor's 500 Index added 1.08 points, or 0.08 percent, to finish at 1,350.66. The Nasdaq Composite Index rose 11.78 points, or 0.51 percent, to end at 2,311.77.
Traders said volume was light as the U.S. bond market was closed for the Columbus Day holiday. Markets were also closed in Canada and Japan for public holidays.
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