Stocks recovered from steep losses on Monday, helped by positive analyst comments about a couple of technology bellwethers.
Stocks plunged in morning trading after an unexpected drop in new home sales fueled slowdown fears, but technology stocks led the way back on Goldman Sachs upgrades of Dell and eBay
.
Goldman upgraded Dell to buy on expectations of a turnaround, while eBay gained more than 4% after Goldman upped estimates on the company. eBay also said it’s working on a mobile version of PayPal.
Alcatel Lucent rose 3% on a $6 billion deal with Verizon Wireless.
Napster surged 10% on a wireless deal with AT&T
.
Novatel jumped 12% after raising guidance.
Agere fell 1% on a warning, taking merger partner LSI
with it.
SMI gained on news that’s seeking investment partners.
The Nasdaq added 7 to 2455, the S&P 500 added 1 to 1437, and the Dow slipped 12 to 12,469. Volume rose to 2.75 billion shares on the NYSE, and 1.82 billion on the Nasdaq. Declining issues led by a 16-15 margin on the NYSE, and 16-14 on the Nasdaq. Upside volume was 51% on the NYSE, and 63% on the Nasdaq. New highs-new lows were 184-15 on the NYSE, and 138-47 on the Nasdaq.
