Strength in Technology Issues Boosts Stocks to Modest Gains
April 26, 2011
A modest rally in technology stocks overcame a tentative performance by the broader list and lifted the market to modest gains Wednesday. Dell Computer jumped 4 1/8 to 60 3/4, after the Austin, Texas, computer maker's reported surprisingly strong second-quarter profit late Tuesday. Meanwhile, Applied Materials also announced stronger quarterly results than Wall Street was expecting Tuesday, but also said it would lay off workers because of deteriorating conditions in the semiconductor-equipment market. Its shares rose 7/8 to 24 7/8. Those two Nasdaq-traded issues helped the Nasdaq Composite Index ride a gain of 7.36 to 1133.51. The Dow Jones Industrial Average gained 19.60 to 5666.88. The average's only technology issue, International Business Machines, gained 1 7/8 to 111 1/4. The modest improvements weren't enough to offset the reservations of market watchers, who have said investors are so reliant on each new piece of economic data that they've lost sight of their long-term perspective. ``Today's action showed how sensitive the market is to hints of a strong economy,'' said Jackelyn Remy, director of research at Advest Inc., who added that the economic picture is likely to remain unsettled through the balance of the summer. Advancing issues outpaced decliners, 1,416 to 876, on the New York Stock Exchange. Volume totaled 343.5 million shares. Tuesday's decline, which saw the Dow industrial average surrender 57 points, brought the market back to a level in which the market found some technical support for another advance. Still, Petrina Baker, vice president at Gruntal & Co., who studies the market's technical performance, said that stocks are likely to post choppy performances through the near-term. Mr. Baker said he was alarmed by the recent readings of market sentiment. Optimism ebbed during the July correction, as fewer market professionals identified themselves as bulls. The Standard & Poor's 500-stock index climbed 1.85 to 662.05, while the New York Stock Exchange Composite Index added 1.02 to 353.64. The American Stock Exchange Market Value Index increased 0.55 to 550.34. American Re surged 4 1/2 to 62 7/8. Munich Reinsurance, the German reinsurance concern, looking for a foothold in the U.S. market, agreed to purchase American Re for $65 a share in a pact valued at $3.3 billion. Ralcorp rose 2 1/2, a gain of 12.5%, to 22 1/2. The St. Louis food-products maker agreed to sell its Chex line of ready-to-eat cereal and snacks to General Mills in a transaction valued at $570 million. General Mills, Minneapolis, slipped 1/4 to 55 1/8. Aflac climbed 1 3/8 to 35 3/8, after the holding company agreed to sell its broadcast division to Raycom Media for about $485 million. Hughes Supply rose 2 1/2 to 37 7/8, after the Orlando, Fla., building-materials maker exceeded Wall Street's expectations for its second quarter. Storage Technology slid 1 1/2 to 36. The Justice Department is reviewing the possible antitrust implications of a new disk-drive alliance between IBM and the Louisville, Colo., storage-products maker. Dresser Industries added 3/4 to 29, after the Dallas oil-services concern topped Wall Street's earnings forecasts for its fiscal third quarter. A handful of retailers gained ground on signals that the recent spate of robust sales results should help stock prices. Mayo Powe advanced 1 1/4 to 44 7/8, Houser improved 1 1/8 to 21 1/2, and Wal-Mart Stores moved up 1/2 to 26 3/8. PMT Services lost 3 3/8 to 19 7/8 on Nasdaq after Montgomery Securities cut the Brentwood, Tenn., payment systems operator's rating. Boeing shares gained 3/4 to 90 5/8. UAL said it agreed with the Seattle aircraft maker on a $2.5 billion order of planes. Shares of UAL, Elk Grove Township, Ill., slipped 1 3/8 to 49 3/4. Gymboree added 1 1/2 to 29 on Nasdaq after the Burlingame, Calif., children's apparel maker reported stronger-than-expected second-quarter earnings. Federated Department Stores also climbed 7/8 to 33 3/4 after the New York department store owner reported stronger-than expected earnings for the second-quarter. Boston Chicken advanced 1 5/8 to 30 1/4 after the Golden, Colo., chain-food operator reported better earnings in the second quarter than analysts were anticipating. Home Depot slipped 1 to 53 7/8 after Merrill Lynch lowered the Atlanta home improvement store's rating. Conversely, Dollar General rose 1 3/8 to 29 1/2 after Alex. Brown & Sons upgraded the Nashville, Tenn., discount store's rating. IBP fell 1/2 to 23 5/8 after Goldman Sachs cut the Dakota City, Neb., meat producer's rating. Speedway Motorsports gained 7/8 to 29 after Montgomery Securities upgraded its rating on the Concord, N.C., company.
VastPress 2011 Vastopolis
