Upgrades Send Techs Soaring

Technology stocks soared to a 17-month high Tuesday on upgrades from two influential Goldman Sachs analysts.

Software analyst Rick Sherlund upgraded Oracle and PeopleSoft , while hardware analyst Laura Conigliaro made bullish comments on Dell and Seagate and said IBM’s business is improving. The two had turned cautious on their sectors in late 2000.

With a better than expected ISM national manufacturing report boosting the broader market, the day was a banner one for investors.

The Nasdaq surged 31 to 1841, the S&P 500 rose 13 to 1021, and the Dow gained 107 to 9523, all new 52-week highs. Volume rose to 1.45 billion shares on the NYSE, and 1.79 billion on the Nasdaq. Advancers led 23-9 on the NYSE, and 22-9 on the Nasdaq. Upside volume was 83% on the NYSE, and 77% on the Nasdaq. New highs-new lows were 425-5 on the NYSE, and 413-7 on the Nasdaq.

Also helping the mood was a bullish report on chip sales and a promising survey of CIOs.

InterActiveCorp slipped 1% on a shake-up in the online hotel room industry.

Qwest gained more than 4% on a contract extension.

Siebel and Sun rose on renewed ties.

Cisco climbed 2.4% after Salomon Smith Barney upped its price target on the stock to $23.

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