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RealTime IT News

Investors Cheer Apple Gaffe

Investors were looking on the bright side for a change on Thursday.

Shares of Apple surged 5% after the company delayed worldwide availability of its iPod mini from April to July.

The reason? The company vastly underestimated U.S. demand for the product, which the company says has "far exceed[ed] the total planned supply through the end of June."

That could mean good things for Apple's first-quarter earnings, and it also means that Apple priced the mini just right, despite initial concerns that it was priced too high.

Apple said it will ramp up its manufacturing of the iPod mini to meet worldwide demand in the July quarter.

The broader market soared Thursday, as investors shook off inflation and terrorism fears to send the market sharply higher.

The Nasdaq soared 57 to 1967, the S&P 500 gained 17 to 1109, and the Dow surged 170 to 10,218. Volume declined to 1.48 billion shares on the NYSE, but rose to 1.97 billion on the Nasdaq. Advancers led 23-9 on the NYSE, and 23-8 on the Nasdaq. Upside volume was 85% on the NYSE, and 93% on the Nasdaq. New highs-new lows were 102-9 on the NYSE, and 65-16 on the Nasdaq.

Microsoft gained 3% as traders continued to digest the EU antitrust ruling.

Micron slipped after missing estimates, but Lattice Semi edged higher on its results.

LSI gained 5% on an acquisition.

ADC Telecom climbed 6% on an acquisition, and Activision surged 11% after raising guidance.

DigitalThink soared 27% on news that it will be acquired by Convergys .

Transmeta rose 8% on a deal with NEC.

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