Tech Rally Broadens
face=”arial, helvetica”>Networkers and other technology
hardware stocks rallied Thursday, at last joining
semiconductors, which had been hogging the winner’s circle.
The Dow Jones
Technology Index iShares
(
IYW |
Quote |
Chart |
News |
PowerRating), which began trading on
the American Stock Exchange on May 19, rose 2.6%, the day’s
biggest gain among the
funds. In another sign of improved tech breadth, the
Technology SPDR
(
XLK |
Quote |
Chart |
News |
PowerRating) moved up 1.9%.
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The Internet
Architecture HOLDR
(
IAH |
Quote |
Chart |
News |
PowerRating) climbed 2.5%. The tradable fund
got a boost from components Sun Microsystems
(
SUNW |
Quote |
Chart |
News |
PowerRating),
which gained 4 1/16 to 119 7/16 (a new high), and EMC
(
EMC |
Quote |
Chart |
News |
PowerRating),
up 5 1/8 to 93 1/8.
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The Broadband
HOLDR
(
BDH |
Quote |
Chart |
News |
PowerRating) rose 2.4%. The basket of stocks got a lift
from good news and price gains in fiber-optics stocks
Finisar
(
FNSR |
Quote |
Chart |
News |
PowerRating) and Global Crossing
(
GBLX |
Quote |
Chart |
News |
PowerRating), and
HOLDR component Ciena
(
CIEN |
Quote |
Chart |
News |
PowerRating). For more on my technical
take on these three stocks, check out Thursday’s
The News column.
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Chip stocks
continued their advance, aided by bullish analyst comments
on the earnings outlook for Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), which rose 2
to 70 1/6. Merrill Lynch’s Semiconductor HOLDR
(
SMH |
Quote |
Chart |
News |
PowerRating)
tacked on 2.3%, notching its fifth straight gain.
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The Energy SPDR
(
XLE |
Quote |
Chart |
News |
PowerRating)
jumped 2.3%, breaking out of a nine-week base as energy
prices moved higher. September crude oil rose 14 cents to
$31.94 on the New York Mercantile Exchange, while September
heating oil added 1.85 cents to 88.73 cents per gallon.
September unleaded gasoline rose 1.43 cents to 94.46 cents
per gallon.
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The downside was
muted among the exchange-traded funds. The Utilities HOLDR
(
XLU |
Quote |
Chart |
News |
PowerRating)
lost 1.3%, the only loss exceeding 1% among the ETFs.
If you’re new to
exchange-traded funds, be sure to visit TradingMarkets’
explaining the basics of trading and active investing in
ETFs and mutual funds. Just click on the
page, then click on the Knowledge
Center tabs.
You also will find
lessons on trading exchange-traded funds in the Stocks
Education area of TradingMarkets.com. In particular, check
out my three-part series on trading ETFs, starting with
Average Crossovers. I also recommend that newcomers read
my tutorial,
HOLDRs: Unique Opportunity And Risk.