Better than expected guidance from Siebel Systemsand more chip sector upgrades got the week off to a good start on Wall Street.
Siebel surged 14% Monday after saying it expects third-quarter revenues of $315-317 million, well above $306 million estimates.
PeopleSoftalso gave more details after Friday’s upbeat forecast, saying it expects revenues of $680-$695 million, compared to $655 million estimates, but the stock gave back 3% after Friday’s 15% run-up on hopes for a merger with Oracle. PeopleSoft said it expects earnings of 13-14 cents a share, in line with estimates. PeopleSoft also experienced a bit of a setback after MicrosoftCEO Steve Ballmer suggested to the Financial Times that Microsoft isn’t interested in the company.
First Albany became the latest firm to upgrade the chip sector on hopes for a rebound, sending the sector 1% higher on the day.
The broader market gained despite an unexpected drop in factory orders, as buying momentum continued from Friday, but stocks finished well off their highs for the day.
The Nasdaq gained 10 to 1952, the S&P 500 added 3 to 1135, and the Dow rose 23 to 10,216. Volume declined to 1.54 billion shares on the NYSE, but rose to 1.86 billion on the Nasdaq. Advancers led 19-13 on the NYSE, and 18-12 on the Nasdaq. Upside volume was 67% on the NYSE, and 69% on the Nasdaq. New highs-new lows were 416-10 on the NYSE, and 192-26 on the Nasdaq.
After the close, Netflixraised guidance, and National Instrumentswarned.
During the day, Yahooslipped after analysts expressed caution ahead of the company’s earnings report due out next week.
Hutchinsonand SimpleTechsoared after raising guidance.
Sungardjumped 10% on plans for a spinoff.
Vitesse, Mobius, SupportSoft, Pervasive, Network Enginesand Atherosfell on warnings.
AT&Trose 4% on hopes for a restructuring.
MSC.Softwaregained 12% on a takeover offer.