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
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. 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

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gained 113.38 to 8804.25. The S&P 500
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rose 13.14 to 932.28. The Nasdaq
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jumped 30.46 to
1520.15.

The day’s leading sectors were Semiconductors
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, +3.82%, Disk Drives
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$DDX.X |
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, +3.76%, Biotechs

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, +3.07%.

Weak today are Gold
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$HUI.X |
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, 
-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
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, +1.53 at
39.80, Caterpillar
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, +1.18 at 53.15, Intel
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,
+.71 at 19.58, and Boeing
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BA |
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+.96 at 29.10.

Stocks in the news:

Chipmaker Nvidia
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NVDA |
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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
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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
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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
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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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