Techs Dodge Blue Chip Downdraft
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Blue chip shares tumbled Wednesday on disappointing results from Alcoa and a delay in Boeing's 787 Dreamliner, but the Nasdaq eked out another multi-year high on strength in some familiar names.
Google rose 1.7% to a new high of $625.39 after Merrill Lynch set a $740 price target on the stock, the latest Wall Street firm to lift its views on the search leader.
Baidu jumped 4.4% to a new high of $343.17 after announcing it will release its quarterly results on Oct. 25, and VMware continued its run, climbing 5.3% to a record $107.04.
But the chip sector was weak once again after Lehman Brothers downgraded chip equipment stocks on memory inventory and slowdown fears. Applied Materials, KLA-Tencor and Novellus all fell.
Akamai rose 4.2% on an AmTech upgrade, while Qwest fell 5.3% on a UBS downgrade.
The Nasdaq rose 7 to 2811, the S&P slipped 2 to 1562, and the Dow fell 85 to 14,078. Volume rose to 3.04 billion shares on the NYSE, and 1.98 billion on the Nasdaq. Decliners led by a 17-15 margin on the NYSE, and 15-14 on the Nasdaq. Upside volume was 45% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 209-63 on the NYSE, and 199-68 on the Nasdaq.