Techs Lead Rebound

Stocks overcame weak earnings from AT&T and BellSouth to end a five-day losing streak, propelled higher by better than expected earnings from technology companies.

The Nasdaq gained 28 to 1388, the S&P 500 rose 8 to 887, and the Dow added 50 to 8369. Volume rose to 1.7 billion shares on the NYSE, and 1.57 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 18-13 on the Nasdaq. Upside volume was 66% on the NYSE, and 80% on the Nasdaq. New highs-new lows were 80-53 on the NYSE, and 65-46 on the Nasdaq.

After the close, Amazon beat estimates and raised revenue guidance. Broadcom’s CEO resigned, and the company beat estimates. Emulex , KLA-Tencor , Nortel , VeriSign , Genesis Microchip , AskJeeves , Varian , Hyperion and Western Digital also topped estimates. UTStarcom and Ariba missed earnings estimates but beat revenue estimates. Microchip missed revenue estimates.

During the day, AT&T and BellSouth plunged on disappointing earnings reports.

But most tech earnings reports were better than investors had feared. EMC , Qualcomm , NetScreen , Texas Instruments , PeopleSoft , CheckPoint , Siebel , Citrix , Mercury Interactive , Storage Tech , Silicon Labs , Computer Associates , F5 and CDW Computer all gained on their earnings reports.

Nokia , Network Associates , Tellabs and SanDisk fell on their earnings reports.

Microsoft , up 2.5%, appealed a judge’s Java ruling and announced more critical flaws.

IBM , up 1.7%, said its Linux business is profitable. SCO Group , meanwhile, is weighing legal action against some corporate Linux users.

Cisco , up 4.6%, sued China’s largest telecom equipment company. , up 0.4%, received another buyout offer.

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