Stocks held gains in late-afternoon trading yesterday and the Nasdaq composite index climbed to session highs after reports from technology bellwethers including Xilinx bolstered enthusiasm for shares across the tech spectrum.
Chip maker Xilinx said order cancellations and delays have slowed, in contrast to a string of downbeat projections from other semiconductor makers. The report, combined with a surprisingly strong profit announcement from telecommunications software maker Comverse Technology helped overshadow concerns about the slumping U.S. economy.
"This market has been priced for bad news so at any hint of good news, the market reacts positively," said Nick Angilletta, head of retail sales and trading at investment firm Salomon Smith Barney. "There's a change of focus, at least in the short term. Funds are taking money out of those (blue chip) names and putting it back into tech."
The Nasdaq Composite Index led the charge higher, gaining 77.75 points to 2,228.58. The broader Standard & Poor's 500 Index gained 16.45 points to 1,279.35, buoyed by Comverse, which was the biggest percentage gainer and had the largest point rise in the index. The Dow Jones industrial average rose 114.32 points to 11,175.84 buoyed by high-tech heavyweights like International Business Machines and Microsoft.
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