Economic reports lift tech stocks By Mike Tarsala, CBS.MarketWatch.com Last Update: 4:33 PM ET Nov. 29, 2001
NEW YORK (CBS.MW) - Technology stocks inched ahead Thursday following a report that reflects a record rise in October durable goods orders due to military spending.
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Computer hardware stocks led the tech-heavy Nasdaq ($COMPQ: news, chart, profile) up 45.28 points, or 2.4 percent, to 1933.25. Shares of Sun Microsystems rose as one of the most heavily traded U.S. stocks. The large-cap Nasdaq 100 Index ($NDX: news, cha
rt, profile) rose 2.7 percent, while the heavily traded QQQ (QQQ: news, chart, profile) tracking stock moved up $1.20 to $39.95.
October durable goods orders increased a record 12.8 percent vs. the 2.1 percent rise forecasted by economists, due to soaring orders for warplanes. Excluding defense, durable orders still beat expectations, up 5.6 percent.
Sun Micro (SUNW: news, chart, profile) shares edged up 5 percent, as the company prepares to provide a midquarter business update next Thursday. It should mark the first time since last year that the company won't have to reduce forecasts during the quarterly meeting, said Thomas Kraemer, analyst at Merrill Lynch.
Shares of handheld computer-maker Palm (PALM: news, chart, profile) advanced 7 percent, a day after the company said it expects quarterly sales to be at the upper end of its target range, or $250 million to $280 million. The company said Wednesday it will cut its workforce by 250 employees and contractors to cut costs. The company expects to meet earnings expectations for its quarter ended Nov. 30.
Hewlett-Packard (HWP: news, chart, profile) shares gained $1.23, or 6 percent, to $21.40, while Compaq (CPQ: news, chart, profile), Dell Computer (DELL: news, chart, profile) and IBM (IBM: news, chart, profile) shares also gained ground. Shares of EMC (EMC: news, chart, profile) gained 41 cents, or 3 percent, to $17.10. The Goldman Hardware Index ($GHA: news, chart, profile) rose 3.8 percent.
Software shares also had a strong showing. Shares of Siebel Systems (SEBL: news, chart, profile) helped to lead the group, rising 7 percent. Heavily traded shares of Microsoft (MSFT: news, chart, profile) rose 3 percent, while Oracle also ended the day higher. The Goldman Software Index ($GSO: news, chart, profile) added 3.6 percent.
Chip stocks recovered from early losses, as makers of networking chips, analog chips and chip equipment rose. Vitesse Semiconductor (VTSS: news, chart, profile) gained 7 percent; Linear Technology (LLTC: news, chart, profile) gained 5 percent; KLA-Tencor (KLAC: news, chart, profile) gained 6 percent
Shares of graphics chipmaker Nvidia (NVDA: news, chart, profile) added $2.25, or 4 percent, to $53.61, after Standard and Poor's said late Wednesday it would replace Enron's (ENE: news, chart, profile) stock in its benchmark S&P 500 Index (SPX: news, chart, profile) with the graphics chipmaker's stock.
Larger chip stocks, however, showed smaller gains. Shares of Intel (INTC: news, chart, profile) rose 2 percent. Rival Advanced Micro Devices (AMD: news, chart, profile) also gained 2 percent, even though J.P. Morgan H&Q analysts said the company is having "some difficulty" ramping small diameter technology needed to build next-generation Athlon processors in the first quarter. The Philadelphia Semiconductor Index ($SOX: news, chart, profile) gained 4.2 percent.
Networking-equipment lagged behind the rest of the tech sector, as shares of Nortel Networks (NT: news, chart, profile), Lucent Technologies (LU: news, chart, profile) and Redback Networks (RBAK: news, chart, profile) all declined. Cisco (CSCO: news, chart, profile) shares, meanwhile, rose $1.01 or 5 percent, to $19.89.
Alcatel (ALA: news, chart, profile) shares helped to lead the sector slightly higher, as shares rose 84 cents, or 5 percent, to $17.72. The company on Thursday reiterated plans to cut costs by a fifth. Chief executive Serge Tchuruk said the company expects to make big progress in 2002 from its restructuring program earlier this year, when it cut around 33,000 jobs at the height of the telecom market downturn. |