The Nasdaq hit a new high after a wave of strong economic data. Fitbit shares rose as much as sixty percent in their first day of trading. Bobbi Rebell reports.
A winning day for U.S. stocks and a big milestone for the Nasdaq. The Composite index broke its all time high set 15 years ago amid the dotcom bubble. Powering the way higher: biotech and telecom stocks. The major indices rose for the third day in a row. The rally comes one day after the Federal Reserve said the economy was probably strong enough to withstand an interest rate hike this year. Data out Thursday showed the economy was gaining momentum. Jobless claims fell last week to a near 15-year low. The Conference Board's leading economic index rose more than expected last month, and factory activity in the mid-Atlantic region increased in June. In corporate news, Fitbit shares sprinted on their debut as a public company. Shares rose as high as 60 percent, making the wearable technology company worth $6.5 billion. Renaissance Capital's Kathleen Smith: SOUNDBITE: KATHLEEN SMITH, PRINCIPAL, RENAISSANCE CAPITAL (ENGLISH) SAYING: "The company has the dominant market share in the U.S. certainly. It's got 85 percent market share in 2014 and over half of the wrist devices globally have been sold by Fitbit. So, this is a very interesting company and investors are going to just love this IPO." Some investors went shopping for Kroger's stock after the grocery chain hiked its full-year forecast for same store sales. Its quarterly earnings also beat analysts' forecasts. On the downside, Rite Aid cut its full-year profit outlook. Interest costs and taxes hurt first quarter earnings, which missed expectations. At least six brokerages cut their price targets on Oracle a day after the database software maker issued a weak profit forecast. Over in Europe, shares rose, lifted by a rally in mining shares.