Techs Soar On Earnings, Upgrades

Strong chip sales, bullish earnings news from Siebel Systems , and upgrades to Microsoft and Dell made for a strong rally on Wall Street Monday.

The Semiconductor Industry Association reported that chip sales were up 4.5% sequentially in November, with strength across all sectors. Chips stocks gained 3.6% on the day.

Siebel gained 10% after raising guidance well above estimates.

And Microsoft and Dell rose after SG Cowen upped the tech giants to Strong Buy and said they will benefit from a continued recovery in IT spending.

Microsoft and Intel also gained on home entertainment ambitions.

The broader market surged on Federal Reserve comments that interest rates will remain low.

The Nasdaq surged 40 to 2047, the S&P 500 gained 13 to 1122, and the Dow rose 134 to 10,544. Volume soared to 1.57 billion shares on the NYSE, and 2.37 billion on the Nasdaq. Advancers led 22-10 on the NYSE, and 21-10 on the Nasdaq. Upside volume was 76% on the NYSE, and 72% on the Nasdaq. New highs-new lows were 620-8 on the NYSE, and 344-4 on the Nasdaq.

After the close, Gateway warned. ScanSource beat estimates, California Micro and Visual Networks raised guidance, and Hutchinson reaffirmed guidance.

During the day, Neoware plunged 22% on a warning.

Pumatech soared 30% after raising guidance.

Sirius fell 8% on negative analyst comments.

Extreme gained 7% on an upgrade, and BMC climbed 6% on an upgrade.

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