HP paced a strong rally in the tech sector Wednesday, rising 2.7% on its latest cost-cutting plan, while the broader market surged on strong earnings reports from FedEx
and Morgan Stanley
.
HP shares have gained 39% since first announcing major job cuts last July.
“We are encouraged by the announcement as it indicates HP continues to execute promised restructuring initiatives,” Baird analyst Daniel Renouard wrote in a research note. “We believe HP’s cost-cutting efforts will continue to yield margin benefits and EPS upside for several quarters to come, and we are buyers at current levels.”
The Nasdaq surged 34 to 2141, the S&P 500 rose 12 to 1252, and the Dow gained 104 to 11,079. Volume rose to 2.36 billion shares on the NYSE, and 1.91 billion on the Nasdaq. Advancers led 24-8 on the NYSE, and 21-8 on the Nasdaq. Upside volume was 81% on the NYSE, and 90% on the Nasdaq. New highs-new lows were 35-130 on the NYSE, and 51-120 on the Nasdaq.
After the close, Jabil fell on its results, while Adobe
rose on a deal with Google
.
During the day, RF Micro gained 4% on a Credit Suisse upgrade.
Spansion tacked on 3.7% on its results.
Oracle edged higher ahead of its results due out late Thursday.
