Technology shares led a broad stock market rally on Tuesday, with Yahoo and Apple
two of the biggest movers.
Meanwhile, suggestions that the Federal Reserve will cut interest rates when it meets in two weeks and solid sales at GM paced the broader market.
Yahoo shares surged 5.5% after Bear Stearns made the company its top pick, noting that despite challenges, the company offers attractive risk/reward and the promise of greater growth from turnaround initiatives. Bear Stearns also said Yahoo could make an attractive acquisition target for Microsoft .
Research in Motion slipped on a Bear Stearns valuation downgrade, while Intel
and AMD
also benefited from positive analyst comments. Smart Modular
fell 10% on a Citigroup downgrade.
Apple gained 4% on an iSuppli report of strong iPhone sales and hopes for new product releases at a company event Wednesday.
Leap and ASE
soared on takeover offers.
The Nasdaq gained 33 to 2630, the S&P 500 rose 15 to 1489, and the Dow jumped 91 to 13,448. Volume rose to 2.73 billion shares on the NYSE, and 1.91 billion on the Nasdaq. Advancing issues led by a 22-10 margin on the NYSE, and 19-10 on the Nasdaq. Upside volume was 78% on the NYSE, and 85% on the Nasdaq. New highs-new lows were 61-53 on the NYSE, and 103-48 on the Nasdaq.