Newspaper article THE JOURNAL RECORD

Tech Stocks Rebound

Newspaper article THE JOURNAL RECORD

Tech Stocks Rebound

Article excerpt

NEW YORK (AP) -- The technology sector rebounded Thursday as investors set aside doubts about earnings and decided to take a chance on stocks that have fallen to their lowest prices in weeks.

But market watchers cautioned that Wall Street still faces turbulence from an expected plethora of disappointing earnings forecasts for the second quarter.

"I would suggest that during the next 15 days as we get more preannouncements we'll see peak volatility. You'll see much bigger gains and losses than usual," said David Eisenberg, chief equity officer at John Hancock Advisers. "Today was a pretty good rally, but there also was an absence of any earnings warnings like the one earlier this week from Sun Microsystems that sent the market down."

The Dow Jones industrials closed up 39.30 at 10,911.94, partly recovering from a 166.50-point fall Wednesday.

The technology-focused Nasdaq Composite index rose 25.99 to 2,110.49, ending a three-session losing streak. The Standard & Poor's 500 index was up 7.74 at 1,255.82.

The gains came on bargain hunting in stocks that fell sharply in recent sessions amid earnings worries and concerns that Wall Street's huge spring rally was premature. Sun Microsystems, whose profit warning late Tuesday triggered intense tech selling, advanced 22 cents to $16.47. Oracle rose 79 cents to $15.30.

The Dow's upturn was also powered by technology, including Intel, which gained 41 cents to $27.01. Industrial stocks were strong as well. 3M was up $1.23 at $118.58, while General Motors rose 79 cents to $56.90.

The advance was the first for the Nasdaq in a week, but it didn't come easily. Trading was choppy throughout the day, with most stocks sluggish early in the session and then unable to maintain bigger gains achieved up in the afternoon.

The market has been moving higher steadily since early April, but in the last few sessions, Wall Street's confidence has faded somewhat. …

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