Tech Industry

MIDDAY MARKETS: Techs rise on eased inflation fears

Techs bounced back Thursday, as lower-than-expected retail figures helped alleviate inflation fears. The Nasdaq Composite Index rose 97.57 to 3,482.30 and the Dow Jones Industrial Average climbed 65.77 to 10,696.37.

The Inter@ctive Week @Net Index gained 11 to 457.54.

Retail sales took an unexpected dip in April, falling 0.2 percent, as opposed to the expected rise of 0.5 percent. The news may have lessened investors' fears of a large interest rate hike next week. The first in nearly two years, could be an aberration. A more important read on inflation comes Friday with April's producer price index.

Intel Corp. (Nasdaq: INTC) rose 6 5/16 to 112 3/8 after it reported a chip defect that makes thousands of computers vulnerable to crashes, a problem that could rival the famed Pentium flaw that cost the chip giant hundreds of millions of dollars in the early 90s.

Microsoft (Nasdaq: MSFT) rose 13/16 to 67 asked a federal judge to reject the government's breakup proposal in its antitrust case Wednesday.

Cisco (Nasdaq: CSCO) recovered 1 15/16 to 60 7/16 as news of its strong quarter finally helped counteract valuation concerns. Applied Materials (Nasdaq: AMAT) also gained 1 1/8 to 85 3/4 after suffering earlier this morning despite a strong quarterly report. Dell (Nasdaq: DELL) slipped 1/4 to 44 11/16 ahead of its quarterly report, expected after Thursday's bell.

Interliant (Nasdaq: INIT), up 1/8 to 20 3/4, said first quarter loss was 62 cents a share, much narrower than the 73 cents a share predicted by First Call Corp.

Value America (Nasdaq: VUSA) rose 5/32 to 2 1/8 after it announced $90 million in financing, and a loss of 60 cents a share for its first quarter.

Xybernaut (Nasdaq: XYBR) rose 2 1/16 to 11, or rocketed 27 percent Thursday after it said IBM will design, develop and manufacture the computer portion of its next generation of wearable computer systems.

Amazon.com Inc. (Nasdaq: AMZN) rose 3/16 to 54 1/8, Yahoo! (Nasdaq: YHOO) climbed 5 53/64 to 124 7/8 and America Online Inc. (NYSE: AOL) gained 3/4 to 54 7/16.