eBayled tech stocks higher Monday after Smith Barney raised its rating on the online auction king to “buy” from “hold.”
Analyst Mark Mahaney said eBay’s recent strong results appear sustainable, and he added that a significant obstacle was removed when Googleconfirmed that it is not working on a competitor to PayPal.
Fee increases, improved buyer protection and higher average selling prices are all benefiting eBay, Mahaney wrote.
“Based on channel checks, our proprietary listing database and incremental analysis, we believe the June quarter results are sustainable,” he wrote.
Shares of eBay gained 4.4% on the day.
While techs were strong, blue chips were weighed down after oil prices spiked following the death of Saudi Arabia’s King Fahd.
The Nasdaq rose 10 to 2195, the S&P added 1 to 1235, and the Dow lost 17 to 10,623. Volume declined to 1.74 billion shares on the NYSE, and 1.51 billion on the Nasdaq. Advancers led 18-15 on the NYSE, and 17-14 on the Nasdaq. Upside volume was 60% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 311-15 on the NYSE, and 243-17 on the Nasdaq.
After the close, Adobelowered guidance to the low end of analysts’ estimates. The stock fell 3% after hours.
During the day, Nokiaand Symbollost ground on changes at the top.
Ebixsoared 39% on its results, and Commscopejumped 12% on its earnings.