HP, Yahoo Bail Out Stocks

HP (NYSE: HPQ) had good news for a battered stock market on Tuesday, reporting better than expected quarterly results a week ahead of schedule.

The news was good enough to send HP shares 14.5% higher and rescue the market from another sell-off, as stocks rallied in the final hour of trading to close with modest gains. Still, HP’s outlook was mixed, as the company forecast better than expected earnings in 2009, but lower than anticipated revenues on an unfavorable currency environment.

Yahoo (NASDAQ: YHOO) was another winner, its shares surging 8.7% on speculation that a new CEO could mean revived deal talks with Microsoft (NASDAQ: MSFT).

Research In Motion (NASDAQ: RIMM) continued to surge on positive analyst comments and buzz ahead of Friday’s launch of the BlackBerry Storm. Its shares gained 12% on the day.

But Corning (NYSE: GLW) served as a fresh reminder of the headwinds facing the economy, falling 8.9% after lowering its fourth-quarter outlook.

ON Semi (NASDAQ: ONNN) edged higher after saying it will withdraw from a joint proposal with Microchip (NASDAQ: MCHP) to buy Atmel (NASDAQ: ATML).

The Nasdaq added 1 to 1483, the S&P gained 8 to 859, and the Dow surged 151 to 8424. Volume rose to 6.75 billion shares on the NYSE, and 2.42 billion on the Nasdaq. Decliners led by a 23-13 margin on the NYSE, and 17-11 on the Nasdaq. Downside volume was 56% on the NYSE, and 53% on the Nasdaq. New highs-new lows were 8-654 on the NYSE, and 6-594 on the Nasdaq.