Tech stocks rocketed Monday after Goldman Sachs said it sees a rebound in IT spending and Microsoft was said to be considering a huge one-time dividend.
Microsoft rose 3.5% on reports of a possible one-time $10 billion dividend, pacing a 3.4% gain by the Nasdaq.
But more important for the tech sector were comments by Goldman Sachs that IT spending may be poised to turn up for the first time since Fall 2001. “At last the bleeding stops,” Goldman wrote.
Goldman said in its IT spending intentions survey that it sees IT spending up 3.5% in 2004. Not exactly 1999 levels, but good enough for a tech sector starved for good news.
The Nasdaq soared 57 to 1720, the S&P 500 surged 18 to 1004, and the Dow gained 146 to 9216. Volume was 1.4 billion shares on the NYSE, and 1.84 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 23-9 on the Nasdaq. Upside volume was 80% on the NYSE, and 83% on the Nasdaq. New highs-new lows were 361-10 on the NYSE, and 390-8 on the Nasdaq.
After the close, Websense surged after raising guidance.
During the day, Yahoo and Juniper rose ahead of earnings reports on Wednesday. Juniper was also boosted by a broadband deal in Vietnam.
Alcatel surged 7% on a DSL deal in China.
BMC plunged 8% on a warning.
TI surged 6% on a wireless camera phone partnership with Sharp.
Overture bolted 6.8% on an extended MSN pact.
EDS climbed 3% on storage ambitions.
And the WorldCom settlement was finally approved.
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