All news was good news on Wednesday, as investors got the fourth quarter off to a rousing start.
IBM climbed 2.3% on an a big outsourcing win.
Palm surged more than 6% on a new product lineup and a rosy sales outlook. Cirrus
rose nearly 11% after boosting its guidance.
The broader market soared despite weaker than expected construction and national manufacturing reports. The reason? The new orders component of the ISM manufacturing report came in better than expected, suggesting more growth ahead. Stocks also bounced as money managers put new money to work on the first day of the new quarter.
The Nasdaq soared 45 to 1832, the S&P 500 surged 22 to 1018, and the Dow soared 194 to 9469. Volume rose to 1.51 billion shares on the NYSE, but declined to 1.83 billion on the Nasdaq. Advancers led 27-5 on the NYSE, and by 22-9 on the Nasdaq. Upside volume was 86% on the NYSE, and 70% on the Nasdaq. New highs-new lows were 178-7 on the NYSE, and 137-4 on the Nasdaq.
After the close, UTStarcom boosted guidance, while Intuit
warned.
During the day, 3Com gained 9% after Cisco
removed a legal obstacle for partner Huawei.
The day did have its losers.
Solectron fell after the company renegotiated its contract with Nortel
on less favorable terms.
Sun lost 2% on almost 100 million shares, as investors continued to digest the company’s massive accounting charge.
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