Shares of Dell soared 8.5% Friday to their highest level in more than four years, as investors cheered the company’s strong results and bullish outlook.
Dell closed at $40.48, its first foray above $40 since early September 2000, when the Nasdaq was trading at 4000 and the S&P 500 at 1500. The company’s ability to steal market share from rivals even in weak markets made it one of the first tech bellwethers to rebound from the 2000-2002 bear market.
AMD soared 13% after Dell CEO Kevin Rollins said the company is considering using AMD chips in its servers. Dell is the only major server company that doesn’t use AMD chips, and a deal has long been rumored. Rollins said Dell has no formal plans to use AMD’s chips, but that the company is studying the issue closely.
Between Dell’s earnings and strong retail sales and consumer sentiment reports, stocks had yet another up day on Friday.
The Nasdaq surged 24 to 2085, the S&P 500 rose 10 to 1184, and the Dow gained 69 to 10,539. Volume rose to 1.54 billion shares on the NYSE, and 2.02 billion on the Nasdaq. Advancers led 24-8 on the NYSE, and 18-11 on the Nasdaq. Upside volume was 77% on the NYSE, and 68% on the Nasdaq. New highs-new lows were 494-17 on the NYSE, and 232-36 on the Nasdaq.
Agilent fell 12% on a warning.
Novell and Microsoft
slipped on another legal tussle.
BEA rose 3% after beating estimates.
Ericsson climbed 6% on a deal with T-Mobile.
Ameritrade gained 5% as retail investors boosted trading volume.
Chinese wireless provider Kongzhong surged 18% on its results.
Nortel continued to slide on accounting concerns.
Amazon.com gained 4% on hopes for strong holiday sales.
