Investors cheered solid results from Sun Microsystems
late Tuesday, but Yahoo
got a chillier reception for their earnings reports.
Sun shares jumped 7% in late trading after the company’s earnings of 3 cents a share and sales of $3.57 billion — up 6% from the year-ago quarter — beat estimates. A $700 million investment from private equity firm KKR also helped boost the stock.
AMD shares slumped 4% after the chipmaker beat sales estimates but missed earnings estimates, thanks to 40% gross margins, five points below estimates, as the company’s price war with Intel
continued to take a toll. AMD’s current quarter sales forecast was also below expectations.
Yahoo shares initially traded down after the company beat estimates but lowered current quarter and full year sales guidance. But the stock reversed back up in late trading on news that it will roll out its new advertising platform on Feb. 5.
Stocks rose during the day on solid results from United Technologies
and Texas Instruments
, but a warning from Alcatel Lucent
pared the Nasdaq’s gains by the close.
The Nasdaq added a fraction to 2431, the S&P 500 rose 5 to 1428, and the Dow gained 56 to 12,533. Volume rose to 2.98 billion shares on the NYSE, and 2.11 billion on the Nasdaq. Advancers led 21-11 on the NYSE, and 18-12 on the Nasdaq. Upside volume was 64% on the NYSE, and 46% on the Nasdaq. New highs-new lows were 238-22 on the NYSE, and 113-43 on the Nasdaq.