Major Averages Close Firmly Positive But Off Best Levels

(RTTNews) - After turning lower over the course of the previous session, stocks showed a substantial move back to the upside during trading on Thursday. The gains more than offset yesterday's loss, extending the recovery from the recent sell-off.

Networking stocks posted particularly strong gains, driving the NYSE Arca Networking Index up by 4.3 percent. With the gain, the index continued to recover from the one-year closing low set last Monday.

Infinera (INFN) led the sector higher, with the optical networking equipment maker jumping by 30.9 percent after reporting third quarter results that exceeded analyst estimates.

Substantial strength was also visible among railroad stocks, with the Dow Jones Railroads Index surging up by 3.6 percent to a record closing high. Union Pacific (UNP) posted a notable gain after reporting better than expected third quarter results.

Biotechnology also saw significant strength on the day, resulting in a 2.6 percent gain by the NYSE Arca Biotechnology Index. The index also reached a new record closing high.

Computer hardware, natural gas, healthcare and internet also posted standout gains, further offsetting recent weakness.

News of a possible Ebola case in New York City pulled the major averages down off their highs in late-day trading, but they remained firmly positive.

The Dow jumped 216.58 points or 1.3 percent to 16,677.90, the Nasdaq soared 69.95 points or 1.6 percent to 4,452.79 and the S&P 500 surged up 23.71 points or 1.3 percent to 1,950.82.