NEW YORK >> Technology stocks soared today after two technology high-profile firms reaffirmed their earnings forecasts, easing some of Wall Street's worries about upcoming second-quarter reports. Tech firms’ guidance
boosts stocksBy Lisa Singhania
Associated PressThe momentum sent the Nasdaq composite index up 3.6 percent and prompted a rally in blue chips. Analysts said many investors were jumping into the market out of fear they'd miss the next big advance.
"We're starting to see more confidence building that there will be a recovery, particularly in technology," said Matt Brown, head of equity management at Wilmington Trust. "Certainly, there are bumps ahead, and the market won't go straight up, but people are feeling like the Federal Reserve's interest rate cuts and the tax cuts will eventually work."
The technology-focused Nasdaq closed up 77.73 at 2,223.66.
The Dow Jones industrial average, meanwhile, rose 114.32 to 11,175.84, a 1.0 percent gain, while the Standard & Poor's 500 gained 16.46, or 1.3 percent, to 1,283.57. It was the fourth straight session all three indexes gained. But today's trading, unlike the quiet sessions that preceded it, came on intense buying after earnings updates from Lucent Techno- logies and chip maker Xilinx.
Advancers led decliners nearly on the New York Stock Exchange, with 1,987 up, 1,091 down and 207 unchanged. Volume was 1.11 billion shares vs. 835.38 million yesterday, which was the second-lightest volume day of the year. The NYSE composite index rose 5.52 to 652.03, the American Stock Exchange composite index gained 8.74 to 955.56 and the Russell 2000 index rose 9.16 to 516.48. The Treasury's 10-year note rose 1/2 to 9730/32; its yield fell 7 basis points to 5.27 percent. The 30-year bond gained 1/2 to 96; its yield fell 4 basis points to 96.
Lucent gained 52 cents to $8.52 after the embattled company reaffirmed its third-quarter earnings projections. Chip maker Xilinx rose $4.37 to $45.96 on news it still expects to report quarterly losses, but those results will be in the range previously forecast.
With second-quarter earnings season approaching, Wall Street has been dogged by fears of weaker than expected results. A reduced earnings forecast from Sun Microsystems last week sent stocks tumbling. Tuesday's announcements allayed some of those concerns.
"That news is eliminating some of the fears that we're going to have an earnings warning parade like we did last quarter," said Todd Clark, co-head of trading at W.R. Hambrecht. "The bleeding may have stopped."
Other tech issues with strong gains included Dow component Intel, up $1.23, or 4 percent, at $29.73, and Cisco Systems, up $1.81, or 9 percent, at $21.54.
ExxonMobil, meanwhile, rose 72 cents to $91.55 as part of a broader sector move on reports that OPEC had agreed to leave its official oil output unchanged, but would meet again in July to assess the impact of Iraq's suspension of its crude exports.