Stocks finish higher in late tech rally


Associated Press

NEW YORK — The growing belief that technology stocks are reaching a bottom turned the battered Nasdaq composite index around in a late-afternoon rally today, but the overall market ended a volatile session mixed.

The tech-focused Nasdaq, down more than 140 points in early afternoon, closed up 42.61 at 3,272.18 after losing 190 points on Wednesday.

The Dow Jones industrial average closed up 53.64 at 10,380.12, but retreated from larger gains earlier in the day. The broader Standard &amp Poor’s 500 index fell 0.46 to 1,364.44.

Investors seemed to be searching for a trend after Wednesday’s session, when a disappointing revenue report from telecommunications equipment maker Nortel Networks touched off a decline in the fiber optics and telecom sectors and brought the overall market lower. Today’s turnaround appeared to be linked to Nortel and other tech stocks.

Nortel traded erratically today following a 29 percent plunge in the previous session. But it closed up 75 cents at $45.75.

"The market is so quick these days to try to anticipate trend changes," said Chris Dickerson, analyst with Global Market Strategists in Gainesville, Ga.

In the last hour of trading, investors began feeling better about tech stocks, Dickerson said. So, they pulled money from the Dow to buy depressed tech shares, including JDS Uniphase, which reported better-than-expected earnings after the markets closed.

"I think there is a memory that last week’s rally was spurred by surprising earnings by Microsoft. And I think there was a feeling that JDS Uniphase would surprise," Dickerson said.

JDS Uniphase rose $3.44 to $74.44 in regular trading, recovering from earlier losses. The company released its first-quarter earnings after the close, and beat analyst expectations by 2 cents a share, and its stock rose 81 cents in after-hours trading.

Analysts said investors should expect prices to fluctuate given the current market environment, where any signs of bad earnings news send stocks tumbling. A permanent market recovery or even a consistent rally will take a while.

"The market is feeling for a bottom," said Eugene Mintz, financial markets analyst at Brown Brothers Harriman &amp Co. "We thought it had bottomed a few weeks ago."

Some computer chip makers also recovered from Wednesday’s decline. Intel rose $3.38 to $44.69, and PMC-Sierra was boosted $10.56 to $171.69.

But today wasn’t better for AT&ampT. The telecommunications company fell again, a day after it announced a major restructuring that would break the company into four separate units and dismantle plans to be an all-in-one communications service provider. AT&ampT also announced Wednesday it was cutting its dividend and warned that fourth-quarter earnings would fall short of expectations. AT&ampT fell $1.44 at $21.94.

No single stock or sector appeared to drive the Dow. IBM was among the biggest gainers, up $5.75 at $92.75. Decliners included American Express, which lost $2.94 to $54.44.

Declining issues outnumbered advancers by a 12-to-11 ratio on the New York Stock Exchange, where volume came to 1.54 billion shares, down from 1.57 billion on Wednesday.

The Russell 2000 index was up 4.55 at 479.76.

Overseas, Japan’s Nikkei stock average rose 0.12 percent. Germany’s DAX index was up 0.29 percent, Britain’s FT-SE 100 fell 1.02 percent, and France’s CAC-40 also was down 1.10 percent.

Copyright ©2000 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Snohomish residents Barbara Bailey, right, and Beth Jarvis sit on a gate atop a levee on Bailey’s property on Monday, May 13, 2024, at Bailey Farm in Snohomish, Washington. Bailey is concerned the expansion of nearby Harvey Field Airport will lead to levee failures during future flood events due to a reduction of space for floodwater to safely go. (Ryan Berry / The Herald)
Harvey Field seeks to reroute runway in floodplain, faces new pushback

Snohomish farmers and neighbors worry the project will be disruptive and worsen flooding. Ownership advised people to “read the science.”

Grayson Huff, left, a 4th grader at Pinewood Elementary, peeks around his sign during the Marysville School District budget presentation on Tuesday, Nov. 28, 2023 in Marysville, Washington. (Olivia Vanni / The Herald)
State OKs Marysville plan with schools, jobs on chopping block

The revised plan would mean the loss of dozens of jobs and two schools — still to be identified — in a school district staring down a budget crunch.

IAM District 751 machinists join the picket line to support Boeing firefighters during their lockout from the company on Thursday, May 16, 2024, in Everett, Washington. (Ryan Berry / The Herald)
Amid lockout, Boeing, union firefighters return to bargaining table

The firefighters and the planemaker held limited negotiations this week: They plan to meet again Monday, but a lockout continues.

The Trestle’s junction with I-5 is under evaluation (Kevin Clark / The Herald)
Here’s your chance to give feedback on the US 2 trestle and its future

Often feel overwhelmed, vulnerable and on shaky ground? So is the trestle. A new $17 million study seeks solutions for the route east of Everett.

Suspected DUI crash injures trooper on I-5 north in Lynnwood

WSP spokesperson said two suspected impaired drivers have crashed into a state trooper in the past 24 hours.

John Pederson lifts a flag in the air while himself and other maintenance crew set up flags for Memorial Day at Floral Hills Cemetery on Friday, May 24, 2024 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Volunteers place thousands of flags by veterans’ graves in Lynnwood

Ahead of Memorial Day, local veterans ensure fellow military service members are never forgotten.

People hang up hearts with messages about saving the Clark Park gazebo during a “heart bomb” event hosted by Historic Everett on Saturday, Feb. 17, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Future of historic Clark Park gazebo now in hands of City Council

On June 5, the Everett council is set to decide whether to fund removal of the gazebo. It could be stored elsewhere.

Brian Hennessy leads a demonstration of equipment used in fire training at the Maritime Institute in Everett, Washington on Wednesday, May 22, 2024. (Annie Barker / The Herald)
‘Ready to go full sail’: Maritime Institute embarks at Port of Everett

The training facility offers Coast Guard-certified courses for recreational boaters and commercial vessel operators.

George Beard poses for a photo outside of the the Stanwood Library in Stanwood, Washington on Wednesday, May 8, 2024.  (Annie Barker / The Herald)
From sick to the streets: How an illness left a Stanwood man homeless

Medical bills wiped out George Beard’s savings. Left to heal in his car, he got sicker. Now, he’s desperate for housing. It could take years.

Logo for news use featuring Snohomish County, Washington. 220118
Lawsuit says Snohomish County deputies not justified in Sultan shooting

Two deputies repeatedly shot an unarmed Sultan man last year, body camera video shows. An internal investigation is pending.

An airplane is parked at Gate M9 on Tuesday, May 21, 2024 at O’Hare International Airport in Chicago, Illinois. (Jordan Hansen/The Herald)
Good luck to Memorial Day travelers: If you’re like me, you’ll need it

I spent a night in the Chicago airport. I wouldn’t recommend it — but with flight delays near an all-time high, you might want to pack a pillow.

Editorial cartoons for Friday, May 24

A sketchy look at the news of the day.… Continue reading

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.