MARKET CLOSE: IBM sparks late tech rally
IBM sparked a late rally in the technology sector Wednesday as the Nasdaq composite moved up 83 points to 3,839.00. The Dow Jones industrial average tacked on 76 points to 10,811.82.
Even Judge Thomas Jackson's imminent ruling on the government's proposed break-up of Microsoft (MSFT) couldn't hold the techs down.
While the volume was rather languid, some big-name tech stocks gained ground even though there's little economic news due out until later this week.
"There's no (major economic) news today and tomorrow, and stocks are marking time ahead of the producer prices data," said A.C. Moore, chief investment strategist at Dunvegan Associates.
IBM (IBM) rocketed up 7 15/16, or 7 percent, to 120 5/16 after Goldman Sachs analyst Laura Conigliaro said it was beginning to see signs of positive revenue growth.
Intel (INTC) shed 5/8 to close at 128 15/16 and Advanced Micro Devices (AMD) lost 3 to 87 1/4.
Microsoft (Nasdaq: MSFT) managed to gain 7/8 to 70 1/2 as investors awaited the final ruling in its antitrust trial. It is expected that Judge Thomas Jackson will endorse a government plan to split the company in two parts and impose restrictions on its business practices.
Applied Micro (Nasdaq: AMCC) plunged 10 3/16, or 10 percent, to 96 5/8 after Bloomberg reported that revenue from the company's sales to Nortel Networks (NYSE: NT), its biggest customer, was below expectations. Nortel shares closed off 3/16 to 58 5/16.
Among widely held PC stocks, Apple Computer (AAPL) rose 3 11/16 to 96 9/16; Dell Computer (DELL) moved up 9/16 to 45 1/4; Compaq (CPQ) shed 13/16 to 27 1/16 and Gateway (GTW) closed up 1 11/16 to 54 1/2.
Juniper Networks Inc. (Nasdaq: JNPR) stormed up 23 5/16, or 12 percent, to 224 11/16 on a report that Nortel is discussing a co-marketing arrangement to use its Internet-communications gear, and may withdraw plans for the development of its own high-speed routers.
Cisco Systems (CSCO) finished up 1 9/16 to 62 7/8. Lucent (LU) trimmed 1/16 to 62 7/16 and 3Com (COMS) closed up 13/16 to 47 3/8.
CyberOptics Corp. (Nasdaq: CYBE) hustled up 2 5/8 to 48 1/4 after it said earnings for the second quarter of 2000 are expected to be at least 4 cents above expectations.
An earnings warning sent InterVoice-Brite (Nasdaq: INTV) south Wednesday as its shares closed off 7 7/16, or 55 percent, to 6 1/8.
MP3.com Inc (Nasdaq: MPPP) shot up 5 1/4 to 16 7/8 after a report that it and Warner Music (NYSE:TWX) were close to a deal that will include both damages for copyright infringement and a plan for it to licensing music from the record company.