Is A Semiconductor Recovery Under Way?
Stocks
closed higher Friday. After a two-day pullback, the major indices
staged a broad-based rally with only gold stocks not participating. The catalyst for today’s
rally came from a better-than-expected earnings report from graphics chip maker Nvidia
(
NVDA |
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PowerRating). Positive comments about a strong Chinese demand and a
recovery in the semiconductor industry from Intel president, Paul Otellini, also
help boosted the market.
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) gained 113.38 to 8804.25. The S&P 500
(
$SPX.X |
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PowerRating)
rose 13.14 to 932.28. The Nasdaq
(
$COMPQ |
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PowerRating) jumped 30.46 to
1520.15.
The day’s leading sectors were Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), +3.82%, Disk Drives
(
$DDX.X |
Quote |
Chart |
News |
PowerRating), +3.76%, Biotechs
(
$BTK.X |
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Chart |
News |
PowerRating), +3.07%.
Weak today are Gold
(
$HUI.X |
Quote |
Chart |
News |
PowerRating),Â
-0.195
The 10-year U.S. Note
is +10 at 116 230.
The dollar is up 0.05 at
95.16.
Gold is +0.20 at 348.90
Crude Oil +1.32 at
27.33.
Volume is
1,308,326,000
on the NYSE, and at 1,555,183,000 on the Nasdaq.
Market breadth was decisively
positive,
with NYSE advancing issues over declining issues by a ratio of 2.66, and up
volume over down volume by a 3.39 ratio. Nasdaq advancing issues over declining issues are at
1.93, and up volume over down volume is at a 3.71 ratio.
Top Dow stocks are:
American Express
(
AXP |
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PowerRating), +1.53 at
39.80, Caterpillar
(
CAT |
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PowerRating), +1.18 at 53.15, Intel
(
INTC |
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News |
PowerRating),
+.71 at 19.58, and Boeing
(
BA |
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News |
PowerRating) +.96 at 29.10.
Stocks in the news:
Chipmaker Nvidia
(
NVDA |
Quote |
Chart |
News |
PowerRating)
was up over 30% on very heavy volume. Late yesterday the company reported first-quarter earnings that were off 80% from year-ago levels, but the company did
manage to beat estimates by 2 cents. This quarter’s lackluster results were due
mostly to slow sales of Microsoft’s XBox game console, but CEO Jen-Hsun Huang
expects XBox sales to pickup over the next two quarters.
Genzyme
(
GENZ |
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PowerRating) was
higher by 10% on heavy volume. The company will end trading of its two separate
tracking stocks, Genzyme Biosurgery and Genzyme Molecular Oncology.
Video game maker Activision
(
ATVI |
Quote |
Chart |
News |
PowerRating) was off 4.5% on heavy volume. The company reported a fourth-quarter
loss of 13 cents a share, in line with expectations. Activision had previously
earned 17 cents a share in the same period a year ago. CEO Robert Kotick is
optimistic that the company’s diversified product line, strong partnerships, and
strong franchises will position the company for near- and long-term
opportunities.
ImClone Systems
(
IMCL |
Quote |
Chart |
News |
PowerRating)
was down 7.00% on big volume. The shares are under pressure today as a Wall
Street Journal article expressed doubt that the company’s auditors, KPMG, will
be unable to complete a review before the May 15 Nasdaq hearing. ImClone’s
shares are at risk of being de-listed because of the firm’s failure to file a 10K
report.
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