NEW YORK >> The technology sector rebounded today as investors set aside doubts about earnings and decided to buy stocks that have fallen to their lowest prices in weeks. Tech stocks rebound
after selloffAssociated Press
But market watchers cautioned that the market still faces turbulence from what is expected to be a plethora of disappointing earnings forecasts for the second quarter.
"I would suggest that during the next 15 days as we get more preannouncements we'll see peak volatility. You'll see much bigger gains and losses than usual," said David Eisenberg, chief equity officer at John Hancock Advisors. "Today was a pretty good rally, but there also was an absence of any earnings warnings like the one earlier this week from Sun Microsystems that sent the market down."
The Dow Jones industrials closed up 39.30 at 10,911.94, partly recovering from a 166.50-point fall yesterday. The tech-focused Nasdaq composite index rose 25.99 to 2,110.49, ending a three-session losing streak. The Standard & Poor's 500 was up 7.74 at 1,255.82.
Advances led decliners 3 to 2 on the New York Stock Exchange, with 1,822 up, 1,236 down and 223 unchanged. Volume was 1.14 billion vs. 1.15 billion yesterday. The NYSE composite index rose 3.56 to 641.67, the American Stock Exchange composite index jumped 11.38 to 939.63 and the Russell 2000 index rose 2.54 to 496.50. The Treasury's 10-year note rose 30/32 to 97 5/2; its yield fell 13 basis points to 5.38 percent. The 30-year bond jumped 1 6/32 to 94 20/32; its yield fell 9 basis points to 5.75 percent.
The gains came on bargain hunting in stocks that fell sharply in recent sessions on a mix of earnings worries and concerns that Wall Street's huge spring rally was premature. Sun Microsystems, whose profit warning late Tuesday triggered intense tech selling, advanced 22 cents to $16.47. Oracle rose 79 cents to $15.30.
The Dow's upturn was also powered by technology, including Intel, which gained 41 cents to $27.01. Industrial stocks were strong as well. 3M was up $1.23 at $118.58, while General Motors rose 79 cents to $56.90.