Bargain hunters gave technology stocks a much-needed boost Tuesday as the Nasdaq composite moved up 91 points to finish at
The Dow Jones industrial average picked up 83 points to close at
Despite Tuesday's gains, analysts aren't convinced the market will regain
its momentum any time soon.
"We've gotten down far enough that there is going to be some bargain
hunting like what we're seeing today," said Richard Dickson, technical
analyst at Scott & Stringfellow. "But I don't think we've put the low on the
market yet. We're clearly still correcting the excesses in some of the tech
Motorola shares moved up 24 cents to $15.20 after the company announced it will cut 7,000 jobs in its cell phone
unit and take a charge against first- and second-quarter results in an
effort to cut costs in the slowing sales environment.
Intel gained $1.63 to $29.38, while Advanced Micro Devices and IBM rose
$1.05 and $2.90 a share, respectively.
Cisco Systems moved up $2.56 to $21.38. Lucent Technologies trimmed 27
cents to $11.25, and Nortel Networks clipped 17 cents to $16.48.
PSINet lost 25 cents, to 75 cents, after the company said it had agreed to
sell its e-commerce data communications unit for $300 million. Despite the
cash boost, the company said it will need to restructure or renegotiate some
of its obligations to third parties.
Among widely held PC stocks, Dell gained $1.81 to $23.88, Compaq inched
up 43 cents to $18.38, Gateway rose 74 cents to $15.90 and Apple Computer
closed up 94 cents to $19.56.
AOL Time Warner tacked on $1.43 to $40.70. Yahoo clipped 31
cents to $16.06, while Amazon.com and eBay gained 38 cents and $2.88 a
share, respectively. CMGI, which reports its second-quarter results after
the bell, moved up 16 cents to $4.
WJ Communications tumbled $1.38 to $3.06 after it warned that it will
miss first-quarter revenue and earnings estimates because of a slowing economy
and weakness in demand.
Integrated Silicon Solution, up 6 cents to $12.50, joined the warnings
parade and said it will miss revenue and earnings for the second quarter.
Novell fell 28 cents to $5.53
as analysts questioned its acquisition of Cambridge Technology
Partners, up 38 cents to $5.53. Though all agreed that Novell got a good
deal on Cambridge shares, a Lehman Brothers analyst said the two companies
could have a tough time integrating.
Staff and Reuters contributed to this report.