Stocks Finally Rise On Good News

Stocks finally gained on good news Wednesday, as a strong service sector report, good earnings news from Oracle, and a step toward peace between India and Pakistan boosted the market.

The ISDEX gained a fraction to 117, and the Nasdaq climbed 17 to 1595. The S&P 500 rose 9 to 1049, and the Dow gained 108 to 9796. Volume fell to 1.29 billion shares on the NYSE, and 1.62 billion on the Nasdaq. Advancers led 17 to 13 on the NYSE, but decliners led 17 to 16 on the Nasdaq.

After the close, Comverse beat earnings estimates but missed on revenue, and Altera reaffirmed guidance.

During the day, Oracle surged 10.7% after CEO Larry Ellison reaffirmed earnings guidance. But Merrill Lynch put out a cautionary note a few minutes later saying that the company’s revenue growth and outlook are more important. Oracle reports June 18.

IBM gained despite earnings estimate reductions by Thomas Weisel.

Intel gained 2.5% ahead of tomorrow night’s mid-quarter update. The company is widely expected to guide to the lower range of estimates.

Dell and Cisco finished the day in the red.

Synopsis and TIBCO slipped on warnings, and eFunds plunged 30% after warning and announcing the departure of its CFO.

Manugistics plunged 25% on a warning.

The IPO of Veridian priced at 16, opened at 18, and closed at 18.15.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the story link at the top of the newsletter.

The Dow, Nasdaq and S&P 500 all closed right under tough resistance today. The Dow (first chart) is right under 9800-9900 resistance, the S&P (second chart) is right under 1049-1054 resistance, and the Nasdaq (third chart) is right under 1600-1607 resistance. All tough levels, and one indicator suggests that this rally may not last very long: Internals have been terrible on this attempted rally yesterday and today, with advancers and decliners and up/down volume barely positive. Decliners have led advancers on the Nasdaq the last two days – both days that the Nasdaq gained 1%. The Dow has support at 9590 and 9500, the S&P has support at 1030, 1015 and 995, and the Nasdaq has support at 1560, 1548 and 1507-1528.



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