Fears of an economic slowdown eased on Tuesday after a number of top tech companies reported strong earnings.
Intelbeat estimates soundly after the bell, with earnings of 34 cents a share on sales of $9.4 billion, driven by strong mobile chip sales. Gross margins of 59% also topped forecasts. The chip giant’s second quarter revenue guidance of $8.6-$9.2 billion compared favorably to $8.91 billion estimates, and the company had a pleasant surprise for chip equipment makers, raising its capital spending outlook to $5.4-$5.8 billion from $4.9-$5.3 billion.
Shares of Intel rose 3% after hours.
Yahooalso got a boost after hours, beating estimates with 13-cent earnings and $821 million net revenues. That was good for a 5% gain after hours, and Googlealso rose on Yahoo’s strong search revenues. Juniperalso topped forecasts.
Stocks rose during the day on strong results from Texas Instruments, EMCand Lucent, and a tame wholesale inflation report also helped.
The Nasdaq surged 19 to 1932, the S&P 500 gained 6 to 1152, and the Dow climbed 56 to 10,127. Volume declined to 2.13 billion shares on the NYSE, and 1.86 billion on the Nasdaq. Advancers led 24-8 on the NYSE, and 21-9 on the Nasdaq. Upside volume was 74% on the NYSE, and 77% on the Nasdaq. New highs-new lows were 18-67 on the NYSE, and 29-116 on the Nasdaq.
Texas Instruments, EMC and Lucent surged on their earnings reports.
ADC Telecom, Adtran, Sybase, Sonusand CDWrose on their results, while Novellus, Lionbridgeand J2 Globalfinished lower on their reports.