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Dow up 77;
Associated Press
Nasdaq gains 83NEW YORK - Technology stocks shook off early losses to close higher today after a Goldman Sachs analyst said IBM is expected to have a strong year.
The Dow Jones industrial average rose 77.29 to close at 10,812.86, while the Nasdaq composite index rose 82.89, or about 2.2 percent, to 3,839.26. Both indexes recovered from early declines. The S&P 500 gained 13.52 to 1,471.36.
Advancers beat decliners by a roughly 5-to-4 margin on the New York Stock Exchange, with 1,606 up, 1,295 down and 500 unchanged. NYSE volume totaled 843.05 million shares vs. 939.88 million yesterday. The NYSE composite index rose 2.88 to 655.88; the American Stock Exchange composite index gained 6.78 to 934.96; and the Russell 2000 4.89 points to end at 516.54.
The 30-year Treasury bond price slipped 1/32 point, 321/2 cents per $1,000 face amount, as the yield held steady at late yesterday's 5.91 percent. The 10-year note at 6.12 percent.
The rosy prospects for IBM helped pull investors off the sidelines, where they had been fitfully awaiting a judge's ruling on Microsoft Corp. After the market closed, a federal judge issued his ruling that the company should be split in two. Microsoft said it will appeal. (See story, page A-1.)
Tech stocks continued a steady recovery from their swoon in March and April, led by IBM.
Goldman Sachs analyst Laura Conigliaro said orders were strong in the past two months, and added that investors may be undervaluing the stock.