Blue-chip and technology stocks ended the week with strong gains Friday as the Nasdaq composite gained 41 points to 2,075.82, and the Dow Jones industrial average rallied up 118 points to finish at 10,810.05.
The gross domestic product (GDP) showed that the U.S. economy, boosted by stronger consumer spending, gained surprising momentum in the first quarter. The United States completed a record 10th year of unbroken expansion.
The Commerce Department said GDP increased at a stronger-than-expected 2 percent annual rate, accelerating from 1 percent in the final quarter of last year when the economy was edging ahead at its most sluggish pace in five and a half years.
"We are looking for evidence the economy is bottoming and starting to improve, and reports like this indicate we are not in a recession and probably not going to be in a recession," John Forelli, senior vice president at Independence Investment Associates, told Reuters. "The Fed has acted quickly enough with interest-rate cuts."
Intel (Nasdaq: INTC) moved up $1.54 to $30.18. Advanced Micro Devices (NYSE: AMD) picked up $2.49 to $30, and IBM (NYSE: IBM) closed up $2.46 to $116.20.
Shares of VeriSign (Nasdaq: VRSN) surged $5.68 to $51.90 after the company topped estimates in the first quarter and said it was comfortable with Wall Street's projections for 2001.
America Online Time Warner (NYSE: AOL) inched up 48 cents to $49.99. Yahoo (Nasdaq: YHOO) gained $1.24 to $19.50, while CMGI (Nasdaq: CMGI) and eBay (Nasdaq: EBAY) rose 7 cents and 87 cents a share, respectively. Amazon.com (Nasdaq: AMZN) finished off 16 cents to $15.27.
Cisco Systems (Nasdaq: CSCO) added 39 cents to $15.60. Lucent Technologies (NYSE: LU) nudged up 12 cents to $10.80, and Nortel Networks (NYSE: NT) finished up 34 cents to $14.84.
Corvis (Nasdaq: CORV) slid $1.49 to $6.40 despite having met estimates in its first-quarter report and announcing a deal to provide Qwest Communications International (NYSE: Q) with the equipment to build a nationwide network.
Among widely held PC issues, Dell (Nasdaq: DELL) tacked on 68 cents to $26, Compaq (NYSE: CPQ) rose $1.20 to $18.20, Gateway (NYSE: GTW) gained 75 cents to $19.50 and Apple Computer (Nasdaq: AAPL) picked up $1.51 to $26.20.
Microsoft (Nasdaq: MSFT) lost $2.01 to $67.12. Oracle (Nasdaq: ORCL) closed up 24 cents to $17.14, and Sun Microsystems (Nasdaq: SUNW) gained $1.60 to $17.38.
Semiconductor-equipment shares gained ground after Intel confirmed its plans to spend $7.5 billion in capital expenditures this year.
Applied Materials (Nasdaq: AMAT) rose $3.05 to $53.89. Lam Research (Nasdaq: LRCX) tacked on $1.03 to $29.03, and Novellus Systems (Nasdaq: NVLS) jumped to $2.18 to $53.
ZDII staff and Reuters contributed to this roundup.