MARKET CLOSE: Intel leads technology rally

Bargain hunters jumped all over leading technology stocks Tuesday as the Nasdaq composite stormed up 60 points to close at 2,679.68. The Dow Jones industrial average rallied up 116 points to end at 10,979.04.

The move comes one day before Fed Chairman Alan Greenspan addresses the Senate in the second half of his Humphrey-Hawkins testimony.

"So far, so good," said Peter Coolidge, the senior equity trader at Brean Murray & Co. "But what's on everybody's mind is whether this is a technical glitch in a trending-downward line, or is it a bottom that's consolidating? Only time will tell."

It took no time for investors buy Intel Corp. (INTC) following an upgrade from SG Cowen. Intel shares closed up 4 3/4 to 67 5/8.

Intel's run-up inspired the rest of the hardware sector. Micron Technology Inc. (MU) hustled up 5 3/4 to 57 3/4 while National Semiconductor Corp. (NSM) and Advanced Micro Devices Inc. (AMD) gained 1 1/16 and 3/16 a share, respectively.

Dell Computer Corp. (DELL) moved up 2 1/8 to 42 1/8 and Compaq Computer Corp. (CPQ) rose 7/16 ahead of Wednesday's earnings report. Gateway Inc. (GTW) stormed up 4 5/16 to 75 while Apple Computer Inc. (AAPL) and IBM Corp. (IBM) closed up 2 3/4 and 3 1/4 a share, respectively.

Chip assembly equipment maker Kulicke & Soffa Industries Inc. (KLIC) picked up 1 13/16 to 25 11/16 after it reported a third quarter net loss much narrower than analysts expected. Applied Materials Inc. (AMAT) gained 3 3/16 to 72 9/16.

Cox Communications Inc. (COX) fell 13/16 to 28 after unveiling plans to buy the cable-TV assets of Gannett Co. (GCI), up 1 11/16 to 76 3/16 for $2.7 billion. Gannett shares ended up 1 7/8 to 76 3/8.

Qwest Communications International Inc. (QWST) added 1 9/16 to 30 1/8 after it posted second quarter earnings a penny above First Call's prediction.

Internet stocks were mixed Tuesday as America Online Inc. (AOL) lost 2 1/8 to fall to 98. Amazon.com Inc. (AMZN) fell 4 15/16 to 101 but Excite@Home Corp. (ATHM) picked up 4 3/4 to 50 15/16. Infoseek Corp. (SEEK) rose 5/8 to 41 5/8 and Lycos Inc. (LCOS) ended up 1/4 to 44 3/8.

PSINet Inc. (PSIX) posted second quarter results that topped consensus estimates by 11 cents. The business-oriented ISP lost $62 million, or $1 a share, in the second quarter. Its shares closed off 1 9/16 to 53 5/16.

eBay Inc. (EBAY) dropped 4 13/16 to 99 9/16 after Monday's better-than-expected earnings.

Among other widely held technology issues, Microsoft Corp. (MSFT) tacked on 1 3/16 to 88 13/16; Oracle Corp. (ORCL) picked up 2 1/16 to 37 1/16; Sun Microsystems Inc. (SUNW) shot up 3 1/4 to 71 9/16; Cisco Systems Inc. (CSCO) rose 1 7/8 to 62 15/16 and Lucent Technologies Inc. (LU) closed up 2 1/2 to 67 1/8.