Apple Upgrade Sends Tech Stocks Soaring
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Apple (NASDAQ: AAPL) shares surged nearly 7% Tuesday on an analyst's upgrade, while the rest of the market soared after an unexpected rebound in consumer sentiment.
Morgan Stanley analyst Kathryn Huberty said Apple's iPhone and the potential of the mobile Internet in general are underappreciated by investors, and she called the company's shares "fundamentally undervalued."
The bullish research note was also good news for rivals Research in Motion (NASDAQ: RIMM) and Palm (NASDAQ: PALM), which saw their shares surge. Palm also benefited from an RBC Capital upgrade, its shares ending the day 10% higher.
NetApp (NASDAQ: NTAP) was another winner, up 8% on a Collins Stewart upgrade. Collins Stewart analyst Ashok Kumar said NetApp's acquisition of Data Domain (NASDAQ: DDUP) will strengthen its competitive position.
Dell (NASDAQ: DELL) rose 2.7% ahead of its quarterly results due out after the close on Thursday. AMD (NYSE: AMD) was another winner, up 6%.
The Dow and S&P gained around 2.5% and the Nasdaq 3.5% on a Consumer Confidence reading of 54.9, 12 points higher than economists expected and nearly 30 points off the record low set in March.
The Nasdaq soared 58 to 1750, the S&P 500 gained 23 to 910, and the Dow surged 196 to 8473. Volume rose to 5.67 billion shares on the NYSE, and 2.1 billion on the Nasdaq. Advancers led by a 30-7 margin on the NYSE, and 21-6 on the Nasdaq. Upside volume was 84% on the NYSE, and 91% on the Nasdaq. New highs-new lows were 20-48 on the NYSE, and 37-18 on the Nasdaq.