Rally sends Nasdaq to seasonal high
Index climbs nearly 45 points; H-P beats estimates
By Rex Crum, CBS.MarketWatch.com
Last Update: 5:24 PM ET Nov. 20, 2002
NEW YORK (CBS.MW) -- Technology stocks followed chip and hardware issues higher Wednesday in a broad rally that sent the Nasdaq Composite Index to its highest close in three months.
After the closing bell, Hewlett-Packard delivered a quarterly report that showed the computing titan beat Wall Street estimates with earnings of 24 cents a share. See full story.
On the whole, technology stocks had one of their best-performing days in several week. The Nasdaq Composite Index ($COMPQ: news, chart, profile) turned around from two days of double-digit losses and posted a gain of nearly 45 points, or 3.3 percent, to close at 1,419.35. It was the Nasdaq's highest close since Aug. 22, when it finished at 1,422.95.
Technology stocks got a boost early in the day after Soundview Technology analysts delivered a cautiously positive view of the semiconductor sector.
In a brief report, Soundview said that the first quarter of next year could mark a much-anticipated "turn in the order picture for the semiconductor capital equipment industry." Soundview also raised price targets on Teradyne (TER: news, chart, profile), Novellus Systems (NVLS: news, chart, profile), Lam Research (LRCX: news, chart, profile) and Analog Devices (ADI: news, chart, profile).
Teradyne's shares climbed $2.26, or 18 percent, to $14.91, while Novellus rose $2.17 a share to $34.13, Lam Research gained $1.19 to close at $14.11, and Analog Devices climbed $1.81 to $29.81.
Against this backdrop, the Philadelphia Semiconductor Index ($SOX: news, chart, profile) advanced 8.3 percent. Bellwether Intel (INTC: news, chart, profile) rose $1, or 5.5 percent, to close at $19.15.
Chip-sector gainers also included TriQuint Semiconductor (TQNT: news, chart, profile), up 47 cents at $6.24; Xilinx (XLNX: news, chart, profile), up $1.93, to close at $22.53; and KLA-Tencor (KLAC: news, chart, profile), which rose $3.03 to $39.82.
Applied Materials (AMAT: news, chart, profile) rose 79 cents to close at $15.86 and Micron Technology (MU: news, chart, profile) gained 86 cents to reach $14.59.
IBM, H-P push hardware shares up
Hewlett-Packard (HPQ: news, chart, profile) shares gained 30 cents to close at $16.85 just before the company released its fourth-quarter figures that showed revenue coming in at $18 billion. CEO Carly Fiorina said the H-P's results showed that it was "delivering on the promise" of its merger with Compaq Computer.
IBM (IBM: news, chart, profile) also led hardware issues higher, but it was its services and consulting business that fueled investor interest in Big Blue.
Resuming their recent bull run, IBM's shares climbed $3.24 to close at $81.61 after the company said it would put $1 billion over the next three years into its consulting and services operations. See full story.
IBM also announced plans to sell $2 billion worth of global bonds. See full story.
Elsewhere, EMC (EMC: news, chart, profile) rose 24 cents to $6.34, Dell Computer (DELL: news, chart, profile) climbed 87 cents to close at $29.21, Gateway (GTW: news, chart, profile) rose 21 cents to $3.72, Apple Computer (AAPL: news, chart, profile) rose 26 cents to $15.53 and Sun Microsystems (SUNW: news, chart, profile) squeezed out a gain of 4cents to close at $3.62.
Software, networkers on the rise
Microsoft (MSFT: news, chart, profile) led the software sector higher, as its shares rose $1.79 to close at $56.62.
Other software notables included Oracle (ORCL: news, chart, profile), up 37 cents to $10.74; Adobe Systems (ADBE: news, chart, profile), which rose $1.01 to close at $28.40; and Veritas Software (VRTS: news, chart, profile), up $1.34 to finish at $17.60.
Siebel Systems (SEBL: news, chart, profile) took back 32 cents to close at $8. The Teachers' Retirement Systems of Louisiana amended a lawsuit against the software company, alleging that Chief Executive Tom Siebel "knowingly certified inaccurate financial results" with the Securities and Exchange Commission, but Siebel issued a statement denying any allegations of impropriety.
Networkers also showed strength, as the Amex Networking Index ($NWX: news, chart, profile) climbed 5.3 percent.
Cisco Systems (CSCO: news, chart, profile) rose 72 cents to close at $14.38. The top maker of networking gear was the most actively traded issue on the Nasdaq with 85.5 million shares exchanged.
Juniper Networks (JNPR: news, chart, profile) gained 40 cents to reach $7.28, Emulex (ELX: news, chart, profile) rose $1.79 to end the day at $21.92, Ciena (CIEN: news, chart, profile) climbed 22 cents to $4.46 and Lucent Technologies (LU: news, chart, profile) inched up 4 cents to close at $1.24.
Rex Crum is a reporter for CBS.MarketWatch.com in San Francisco. |
