Techs Lead Market Comeback
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Better than expected results from Wal-Mart and assurances from Goldman Sachs that it won't be writing off credit market losses gave investors hope Tuesday that the broader economy can survive the credit market meltdown.
Blue chip averages soared nearly 3% on the news, and the Nasdaq fared even better, its 3.5% gain its best one-day performance since 2003. The Nasdaq had fallen more than 8% in the last week on fears that the credit market turmoil could slow IT spending.
Apple gained 10% on reports that it was in preliminary talks with China Mobile to sell its iPhone in China, and Research In Motion was another 10% gainer. VMware and Baidu were up 13% each.
E*Trade recovered $1.45 of Monday's $5 plunge on news of its own credit market losses. E*Trade ended the day at $5 a share.
Adobe lost 3% on news that COO Shantanu Narayen will replace CEO Bruce Chizen on Dec. 1. The company's sales guidance was also a little shy of estimates.
The Nasdaq soared 89 to 2673, the S&P surged 41 to 1481, and the Dow soared 319 to 13,307. Volume declined to 4.1 billion shares on the NYSE, and 2.72 billion on the Nasdaq. Advancers led by a 27-6 margin on the NYSE, and 21-8 on the Nasdaq. Upside volume was 93% on the NYSE, and 91% on the Nasdaq. New highs-new lows were 29-214 on the NYSE, and 65-184 on the Nasdaq.