Unexpectedly strong earnings reports from Amazon.com and KLA-Tencor
boosted technology shares on Wednesday.
Amazon shares soared 12% on stronger than expected earnings and revenues, and the company’s forward guidance and commentary suggested that margins will begin to improve and technology and content investment begin to taper off.
KLA sent the chip sector 2% higher after the company blew past sales estimates and suggested that its stock option troubles may soon be behind it.
Other earnings gainers included Avaya , Seagate
, Supertex
, Websense
and QLogic
, while Corning
, Genesis Micro
and Check Free
fell on their results.
Microsoft edged higher ahead of its results due out late Thursday.
In after-hours trading, Business Objects gained on its results, while Symantec
fell on its numbers. Red Hat
tumbled on competition from Oracle
.
The Nasdaq’s strength helped blue chips overcome weakness in shares of GM and Boeing
and a slightly more hawkish Federal Reserve.
The Nasdaq rose 11 to 2356, the S&P 500 added 4 to 1382, and the Dow tacked on 6 to 12,134. Volume rose to 2.85 billion shares on the NYSE, and 2.19 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 17-13 on the Nasdaq. Upside volume was 66% on the NYSE, and 63% on the Nasdaq. New highs-new lows were 340-17 on the NYSE, and 145-46 on the Nasdaq.