This Helped Lift Stocks
Technology again led the way on this second trading day of the year, on hopes
that increased demand will go right to the bottom line and boost corporate
profits. The Semiconductor Industry Association reported that November was the
second month of sequential growth after a year-long slide in billings. Although
higher-than-expected unemployment numbers were announced before the open, a
positive construction-spending report helped lift stocks during the session.
The Dow rallied 98.74 to 10172.14; the Nasdaq gained 64.93, closing at
2044.18; the S&P 500 rose 10.60 to 1165.27.
The SOX rallied 45 points, or 8%; and up about 71% from the September lows.
EMC
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PowerRating), a big loser for 2001, was strong after Smith Barney issued a
buy on the stock, citing a turnaround and new products. EMC closed at 16.57, up
1.79. Intel
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PowerRating) tacked on 2.52 to 35.52; Intel releases earnings on
January 15. Novellus
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PowerRating) rose 4.11 to 45.71;Â KLA-Tencor
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gained 3.20 to 55.50; Micron
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PowerRating) rose 3.27 to 36.51.
Communications equipment stocks, many of which lost three-fourths of their
value in 2001, were also strong. JDSU rose .39 to 9.52; Ciena
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PowerRating) gained
.09, closing at 15.68;Â Corning gained .52 to 9.70;Â Nortel
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PowerRating)
rose .53 to 8.28.
Airlines continued their gains, even though December traffic was down 17%
compared to last year, with American
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PowerRating), Delta
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PowerRating) and Continental
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PowerRating) making two-month highs.
Drugs and biotechs were weak. Merck
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PowerRating) fell on concerns the company
has a weak drug pipeline, falling .73 to 59.03.
Amgen
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PowerRating) fell 2.06, to 54.34; ImClone
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PowerRating) made new lows,
down 2.06 to 41.27.
Dow Chemical
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PowerRating) warned, but managed to close up on the day, to 35.44,
up 1.25.
Business software maker Peregrine Systems
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PowerRating) also warned, but got
slammed, down 5.24 to 9.27.
Walgreen
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PowerRating) beat estimates by a penny and the stock rose 1.33 to
34.41.
Itron
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PowerRating) rallied nicely after a down day yesterday and Thursday
morning. The company announced that it expects to “slightly exceed”
previous expectations. After the announcement, shares rallied, closing up 2.98
to 28.78.