Apple, Amazon Lead Tech Stock Rally
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A massive government rescue of Citigroup (NYSE: C) sent stocks soaring for a second day on Monday, while Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) led the tech sector higher ahead of the start of the holiday shopping season.
The government's rescue of Citi the biggest U.S. financial company, with $2 trillion in assets sent stocks soaring on hopes that the bailout can bring an end to the worst economic crisis since the Great Depression. Also boosting stocks was the appointment of President-elect Barack Obama's economic team, with New York Fed President Timothy Geithner as Treasury Secretary and Harvard economist and former Treasury Secretary Lawrence Summers as a top advisor.
Apple and Amazon rose 12% each on hopes that the deal can boost consumer confidence in time for the critical holiday shopping season.
After the close, HP (NYSE: HPQ) fleshed out the details of its better than expected results preannounced a week ago.
HP's results were boosted by strong notebook and blade sales and the addition of EDS, but printing, industry-standard server and business critical system sales weighed on results.
HP said it expects 2009 to be a tough year, and the company sees more savings from its merger with EDS and also plans to tighten discretionary spending.
Other stocks beating the Nasdaq's 6.3% gain during Monday's trading session included Cisco (NASDAQ: CSCO), Comcast (NASDAQ: CMCSA), Dell (NASDAQ: DELL), Qualcomm (NASDAQ: QCOM), Yahoo (NASDAQ: YHOO) and Symantec (NASDAQ: SYMC).
The Nasdaq surged 87 to 1472, the S&P gained 51 to 851, and the Dow soared 296 to 8443. Volume declined to 8.74 billion shares on the NYSE, and 2.64 billion on the Nasdaq. Advancers led by a 32-4 margin on the NYSE, and 22-7 on the Nasdaq. Upside volume was 93% on the NYSE, and 94% on the Nasdaq. New highs-new lows were 2-153 on the NYSE, and 3-265 on the Nasdaq.