April 22, 2011 > Tech earnings give Nasdaq biggest jump in 6 months
Tech earnings give Nasdaq biggest jump in 6 months
By Francesca Levy, AP Business Writer
NEW YORK (AP), Apr 20 - Strong earnings from technology companies including Intel Corp. sent stocks soaring Wednesday. The Nasdaq composite index had its biggest one-day jump in six months.
The Nasdaq rose 57, or 2 percent, to 2,802 in early afternoon trading. The technology-focused index hasn't risen that much since Oct. 5.
The Dow Jones Industrial Average rose 200 points, or 1.6 percent, to 12,467.
Intel rose 6 percent, the most of the 30 companies in the Dow average, after the chip-maker reported that its income rose 29 percent in the first quarter because of rising demand for personal computers. The results easily beat analysts' expectations and allayed concerns that surging sales of tablet computers would hurt Intel's results.
The Standard & Poor's 500 index rose 19, or 1.5 percent, to 1,331.
Amphenol Corp. rose 6 percent, the most of any company in the S&P 500 index, after reporting that its earnings per share rose 31 percent. The company makes fiber optic connectors and electrical equipment.
Several other prominent companies also reported much stronger earnings. Freeport-McMoRan Copper & Gold Inc. jumped 4 percent after the mining company's income came in well ahead of analysts' expectations.
Industrial conglomerate United Technologies Corp. rose 4 percent after its income rose 17 percent, also beating Wall Street expectations. The company also raised its forecast for 2011 profit.
Wynn Resorts Ltd. rose 7 percent after its revenue climbed 39 percent. The casino operator opened a new Macau resort and won more money from gamblers at table games in Las Vegas.
The stronger corporate earnings reports came after mainly disappointing results released last week. Google Inc. and Alcoa Inc. were among the big companies whose earnings didn't live up to expectations.
``The contrast from last week is driving stocks,'' said Clark Yingst, chief market analyst at investment bank Joseph Gunnar.
IBM Corp. also beat earnings expectations but the stock was flat after the company said it signed fewer overseas contracts.
Yahoo Inc. rose 5 percent after reporting that cost-cutting efforts pushed its earnings above Wall Street's expectations. Yahoo also reported a 10 percent jump in display advertising.
Not all companies beat expectations. Altria Group Inc. fell 0.6 percent after reporting that it sold fewer cigarettes.
AT&T Inc. fell 0.5 percent after saying it pulled in the lowest number of new subscribers for iPhones because of competition from Verizon.
Wells Fargo & Co. fell 4 percent, the most of any company in the S&P 500. The bank reported a sharp decline in new mortgages.