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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Harry Landsiedel who wrote (38043)	12/1/1998 3:03:00 PM
From: Elwood P. Dowd	Read Replies (2) \| Respond to of 97611

Holiday forecasts lift hardware stocks By Binti Harvey, CBS MarketWatch Last Update: 1:58 PM ET Dec 1, 1998 NewsWatch NEW YORK (CBS.MW) -- Hardware stocks rebounded Tuesday, uplifted by optimism surrounding the kickoff of the holiday retail season. Computer shares jumped 2.2 percent, while semiconductor stocks rose 0.6 percent. Analysts expect strong PC sales and firming component prices to boost stock prices in the December quarter. Bear Stearns & Co. Inc. said a study by MarketMaps Inc. projects a 50 percent increase in consumer PC purchases to 5 million PCs this holiday season compared to a year ago. "Checks with traditional channel resellers indicate PC unit sales during the first two months of the fourth quarter are tracking along expectations," said Donaldson Lufkin & Jenrette PC hardware analyst Kevin McCarthy. Analysts attribute the higher sales to accelerated penetration of PCs into US households due to lower prices and increased use of the Internet. "The Internet has emerged as the new killer application and could provide upside to our retail unit forecast during the fourth quarter," said McCarthy. Aided by its recent collaboration with America Online Inc. (AOL), Sun Microsystems Inc. (SUNW) rose 3 3/8 to 77 7/16. Other PC hardware makers also benefiting from the holiday spirit included IBM Corp. (IBM), up 1 3/8 at 166 1/2, Compaq Computer Corp. (CPQ), up 5/8 at 33 1/8 and Dell Computer Corp. (DELL), up 1 9/16 at 62 3/8. In line with holiday expectations, microprocessor and DRAM shares rose. Intel Corp. (INTC) rose 1 3/4 to 109 3/8 and Micron Inc. (MU) rose 1 3/16 to 42 1/2. Internet and communications-related chips also firmed, as Broadcom (BRCM) rose 1 to 90 5/16.