LAGGING HIGH-TECH STOCKS RALLY : MICROSOFT EARNINGS JUMP BY 30 PERCENT.Byline: Eileen Glanton Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Technology stocks broke out of their slump Wednesday after Microsoft's better-than-expected earnings report raised hopes that demand for computers will remain strong. However, the rally could be short-lived, as IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) warned as the market was closing that demand for some of its major products is way off due to year 2000 concerns. The Dow Jones industrial average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. rose 187.43, to close at 10,392.36. The Nasdaq composite index Nasdaq Composite Index An index that indicates price movements of securities in the over-the-counter market. It includes all domestic common stocks in the Nasdaq System (approximately 5,000 stocks) and is weighted according to the market value of each listed , which lists many of the world's leading technology companies, was up 99.95, at 2,788.13. Broader indicators also rose, with the Standard & Poor's 500 gaining 28.11, to 1,289.43. The Nasdaq benefited most directly from Microsoft's announcement late Tuesday that profits jumped 30 percent in its fiscal first quarter on strong demand for personal computers equipped with its Windows operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. . Microsoft also reported strong sales of its Office 2000 and other business software. Microsoft soared $5.9375, to $92.25, lifting many technology stocks that were battered over the past week as investors worried about disappointing profit reports from Intel and Dell. ``The rumor was out that corporate earnings would be good, but Microsoft really offered the first evidence of it,'' said Bob Dickey, managing director of technical analysis at Dain Rauscher Wessels in Minneapolis. ``And Microsoft is such an important bellwether for the market.'' The rage for technology stocks extended to the Dow, where IBM rose sharply throughout the trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. on expectations it would post solid earnings growth. After the close of trading in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , IBM said its earnings matched analyst expectations, but it also warned that customers are delaying purchases of its powerful network and database servers due to worries the year 2000 date change may cause widespread computer failures. Sales of the machines fell 40 percent during the quarter, a drop greater than expected. As trading on regional stock exchanges continued past the 4 p.m. close in New York, IBM's shares gave up nearly all their ground. Robust earnings growth has helped investors shrug off worries about higher interest rates. But analysts warned that as long as fears of rising rates keep investors on guard, the market may not tolerate many earnings disappointments. |
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