RealTime IT News

Goldilocks Returns to Wall Street

Stronger than expected growth in the service sector coupled with tame inflation gave investors hope Tuesday that the broader economy won't follow manufacturing into a recession.

The national ISM services report came in at a much stronger-than-expected 58.9, and while third-quarter productivity was weaker than expected, tame wage growth in the report eased inflation fears and raised hope that the Fed may yet engineer a soft economic landing.

The news was good enough for another day of modest gains for stocks.

Comtech and Sycamore rose on their results.

MTM soared 61% on an IT services contract win.

Netlogic fell on a downgrade, while Priceline fell on news of more selling by Hutchison Whampoa .

Qualcomm gained 4% a day after the company made two acquisitions. PMC-Sierra was another rising on above-average volume.

The Nasdaq added 4 to 2452, the S&P 500 gained 5 to 1414, and the Dow rose 47 to 12,331. Volume declined to 2.76 billion shares on the NYSE, but rose to 2.08 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 16-15 on the Nasdaq. Upside volume was 62% on the NYSE, and 49% on the Nasdaq. New highs-new lows were 547-12 on the NYSE, and 212-38 on the Nasdaq.