Tech Stocks Rocket on European Rescue Plan
Page 1 of 1
Just two trading days after the scariest day for stocks since 1987, the U.S. stock market recovered most of its losses in a massive rally on a $1 trillion European rescue plan.
The move by the European Union and the International Monetary Fund raised hopes that the financial crisis that began in Greece can be contained, and global central banks also pledged financial support.
In the U.S., regulators and exchanges agreed to come up with a more uniform system of individual stock circuit breakers and handling erroneous trades, which helped fuel last week's 998.5-point intraday drop in the Dow Jones Industrial Average.
The Nasdaq gained nearly 5 percent on the news, while the Dow and S&P jumped around 4 percent each.
Stocks gaining 5 percent or more on the day included Cisco (NASDAQ: CSCO) — which will report its quarterly results on Wednesday — Intel (NASDAQ: INTC), Apple (NASDAQ: AAPL), Micron (NASDAQ: MU), Applied Materials (NASDAQ: AMAT), Yahoo (NASDAQ: YHOO), Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOG), VMware (NYSE: VMW), HP (NYSE: HPQ) and Tellabs (NASDAQ: TLAB).
In addition to Cisco, Dell (NASDAQ: DELL), HP, NetApp (NASDAQ: NTAP), Applied Materials and Brocade (NASDAQ: BRCD) will also report earnings this month.
Comcast (NASDAQ: CMCSA) and Cablevision (NYSE: CVC) ended lower on concerns about FCC regulation.
Priceline (NASDAQ: PCLN) soared 10 percent ahead of its quarterly results, then tumbled 12 percent after the close after reporting a 26.5 percent jump in revenues, as analysts were looking for a 29.2 percent increase. The company's June quarter guidance was also lower than expected.