Investors Cheer Microsoft Results

Microsoft gave investors reason to celebrate Friday with better than expected results and guidance.

However, the company’s own stock managed only a small gain after it dashed hopes for a dividend boost.

But investors seized the opportunity to bid up stocks on one of the few genuinely positive technology earnings reports that the second quarter has produced.

The Nasdaq recovered 10 to 1708, the S&P 500 rose 11 to 993, and the Dow surged 137 to 9188. Volume declined to 1.36 billion shares on the NYSE, and 1.6 billion on the Nasdaq. Advancers led 21-10 on the NYSE, and 18-12 on the Nasdaq. Upside volume was 80% on the NYSE, and 64% on the Nasdaq. New highs-new lows were 61-15 on the NYSE, and 106-11 on the Nasdaq.

A host of tech stock got rave reviews from investors on their earnings reports. Ericsson , Scientific Atlanta , Avid , and Extreme scored double-digit gains, and UTStarcom rose 5% on its earnings.

WebEx started out with strong gains but gave them back by the close, and PMC-Sierra and Xilinx declined on their results.

PeopleSoft completed its acquisition of JD Edwards .

Amazon lost 3.7% on patent troubles.

Netflix fell on worries about potential competition from Starbucks and Wal-Mart .

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