Shorts better cover...Intel is super cheap when compared to other big-tech names....Intel business is picking up...
joey
Tech stocks resume rally
Intel expected to meet estimates
By Binti T. Harvey, CBS MarketWatch
Last Update: 02:30 PM June 24, 1998
Index of top news
NEW YORK (CBS.MW) -- Semiconductor shares drove technology
stocks higher Wednesday afternoon amid growing confidence Intel will
meet second-quarter earnings estimates.
The Pacific Stock Exchange Technology Index gained 1 percent while the
Morgan Stanley Technology Index rose 0.7 percent
The Philadelphia Semiconductor Index rose 1.1
percent, the Goldman Sachs Computer Hardware
Index rose 0.3 percent and the Computer
Software Index gained 0.6 percent. The Amex
Internet Index surged 1.6 percent.
Meanwhile, the tech-heavy Nasdaq Composite
added 13 points to 1857 while the Dow Jones
Industrial Average fell 19 to 8808. See Market
Snapshot.
Yen dips, international markets rise
Tokyo stock prices rebounded moderately in
sluggish trading Wednesday as the market awaited
details of government steps to revive the economy.
The dollar rose sharply against the yen.
The 225-issue Nikkei Stock Average gained 68.58
points, or 0.46 percent, closing at 15,123.18.
Elsewhere, Hong Kong's Hang Seng index rose
0.94 percent. In Europe, London's FT-SE 100
index rose 0.27 percent while Germany's DAX
gained 1.07 percent. See World Markets.
Large-cap technology issues lost steam after taking
off in previous sessions. Microsoft (MSFT) gained
1 7/8 to 102 5/8, Dell (DELL) rose 5/8 to 93 3/4
Cisco (CSCO) rose 1 3/8 to 88 1/4.
Bullish on Intel
Bullish comments from BancAmerica Roberston
Stephens helped lift Intel (INTC) 1 to 76 1/4.
Analyst Dan Niles doesn't expect Intel to issue an
earnings warning for its second quarter because business has picked up
this month. Niles believes the company will meet or beat the consensus
estimate of 68 cents, and reiterated his strong buy and $100 price target.
Niles said demand has accelerated for Intel products since the June 7
price cuts, leading to temporary tightness in markets for high-end and
low-end products.
Elsewhere, semiconductor issues were mostly higher. Texas Instruments
(TXN) rose 1 1/8 to 59 3/8, Broadcom (BRCM) gained 7 5/8 to 66 1/8
and Rambus (RMBS) gained 4 1/2 to 62, stretching its rally into a third
session.
Among computer manufacturers, IBM (IBM) edged down 1/8 to 111
5/8, Hewlett-Packard (HWP) rose 1/2 to 59 3/4 and Gateway (GTW)
fell 3/4 to 47 1/8.
After a brief rest earlier in the session, Internet stocks resumed their climb.
Amazon.com (AMZN) rose 3 1/4 to 96, Yahoo! (YHOO) gained 1 1/2
to 149 5/8, CD Now (CDNW) rose 1 7/8 to 20 3/4 and Mindspring
(MSPG) added 1 1/4 to 79 5/8.
AT&T-TCI
AT&T (T) fell 3 7/8 to 61 1/2 after it said it will purchase cable provider
Telecommunications Inc. (TCOMA) for $48 billion in stock and assumed
debt. See full story
Providers of cable and telephony equipment received a boost from the
deal including Lucent (LU), up 2 3/4 at 81 1/4, ADC Telecommunications
(ADCT), up 2 7/8 at 35 1/2, Tellabs (TLAB), up 2 1/8 at 71 1/2 and
Motorola (MOT), up 1 1/2 at 53 1/2.
Goldman Sachs analyst Mary Henry said these companies will benefit
because AT&T will have to accelerate spending on cable plant and
network upgrades to integrate TCI into its business.
Tech movers
Wind River Systems (WIND) shares jumped 5 1/8 to 36 1/4 after a pair
of investment banks raised their ratings on the company. See Software
Report
Shares of Qualcomm Inc. (QCOM) surged 3 1/8 to 54 3/4 on an
upgrade from Bankers Trust Alex. Brown. See Tech Report
|
