Cisco Sends Tech Stocks Surging
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Better than expected quarterly results from Cisco Systems (NASDAQ: CSCO) sent the Nasdaq to its highest level since June 25 despite lingering worries about the housing and financial crisis.
Cisco's strong quarter and assertions that the economic downturn will be short-lived sent its shares 5.7% higher and the Nasdaq 1.2% higher.
Cisco even managed to drag blue chip stocks higher despite a much bigger than expected loss at Freddie Mac (NYSE: FRE) that renewed fears about the year-long housing and credit market crisis.
Microsoft (NASDAQ: MSFT) jumped 3% after a UBS analyst said the company could buy back as much as $20 billion of its stock to boost its shares.
But not all tech stocks ended the day on the upside. Sprint (NYSE: S) and Priceline (NASDAQ: PCLN) suffered double-digit percentage declines on their results, as did Kulicke and Soffa (NASDAQ: KLIC) and Smith Micro (NASDAQ: SMSI).
Multi-Fineline (NASDAQ: MFLX), Internap (NASDAQ: INAP), Entropic Communications (NASDAQ: ENTR) and Pinnacle Data (AMEX: PNS) lost more than 30% each on their results.
ON Semi (NASDAQ: ONNN) gained 7% on its results, while NetSuite (NYSE: N) fell by that much on its earnings report.
The Nasdaq rose 28 to 2378, the S&P gained 4 to 1289, and the Dow rose 40 to 11,656. Volume declined to 4.87 billion shares on the NYSE, and 2.29 billion on the Nasdaq. Advancers led by an 18-15 margin on the NYSE, and 17-12 on the Nasdaq. Upside volume was 53% on the NYSE, and 70% on the Nasdaq. New highs-new lows were 43-82 on the NYSE, and 66-105 on the Nasdaq.