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Markets gain on war news

Investors cheer the latest developments in the war in Afghanistan, tossing aside a profit warning in the tech sector to boost stocks.

Investors cheered the latest developments in the war in Afghanistan, tossing aside a profit warning in the tech sector to boost stocks Tuesday.

Word that the Taliban had retreated from Kabul, along with news that Monday's plane crash outside New York's Kennedy airport was likely not terrorism-related, sent the markets up.

The Nasdaq gained 51.98 points, or 2.82 percent, to close at 1,892.11, and the Dow Jones industrial average rose 196.58, or 2.06 percent, to close at 9,750.95.

That information largely overshadowed a warning from Oracle that it would miss earnings estimates for the second quarter. CEO Larry Ellison told attendees at the Comdex Fall 2001 trade show in Las Vegas that the company would likely post a profit of 9 cents to 10 cents per share, lower than the consensus estimate of 11 cents per share, according to First Call. Oracle shares were down 88 cents to $14.52.

Bankrupt Internet service provider Covad Communications secured $150 million in loans and other financing from Baby Bell SBC Communications. SBC shares were down 54 cents to $37.40.

IBM is working on a new family of servers that will use a combination of Intel chips and Big Blue technology to create lower-cost, mainframe-like servers based on mainstream hardware, sources close to the company said. IBM shares were up $1.84 to $116.70, and Intel's rose $1.67 to $30.05.

Broadview International, a mergers and acquisitions advisory firm specializing in technology, has let go 25 percent of its 295-person staff. The layoffs affect investment bankers, analysts and support staff in the company's four offices in Fort Lee, N.J., California's Silicon Valley, Boston, and London.

Among other heavily traded tech issues, JDS Uniphase was up 95 cents to $10.58, Ciena fell 45 cents to $18.40, Cisco Systems was up 32 cents to $19.58, and Sun Microsystems gained 40 cents to $13.13.

Amazon.com was up 24 cents to $7.29, and AOL Time Warner rose $1.57 to $38.

Staff and Reuters contributed to this report.