Tech stocks up on Dell; Alcoa offsets Exxon, GM
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Technology stocks jumped on Wednesday after personal computer maker Dell Inc.'s  strong earnings, while the Dow ended slightly higher as Alcoa's  shares rose -- tempering the effect of falling oil prices on energy shares and financier Kirk Kerkorian cutting his stake in General Motors Corp.
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(InfoWorld) - With U.S. markets closing for Thanksgiving, Google Inc.'s skyrocketing share price andÂ Dell Inc.'s earnings report are ending the fall trading season on a high note. Both developments, which pushed the Nasdaq Composite Index to rise 11.14 points and close at 2465.98 before the Thanksgiving break, highlight positive underlying trends but are shadowed by questions about long-term profits. Google (ticker symbol: GOOG), breaking the US$500 share-price mark Tuesday and staying above the magic number until Thanksgiving, has a market value greater than any media company and all IT companies except for Microsoft Corp. and Cisco Systems Inc. Google's lead in online search helps it grab a lion's share of online advertising revenue. Earlier this month, the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC) reported that companies spent about $4.2 billion on online ads in the third quarter, as the market grew for the eighth consecutive quarter. But what happens when that growth inevitably slows? Google, expected to generate $2.8 billion in profit this year, is spending enough on R&D to defend its search turf and challenge Microsoft and other software developers in a new generation of Internet-based applications. It is hiring developers at a dizzying rate, and there's no doubt its young talent is generating a wealth of ideas. Most analysts polled by Thomson First Call expect shares to go higher still. Meanwhile, analysts applauded Dell's earnings report, issued Tuesday: Research firm Bear Stearns immediately boosted its rating from "peer perform" to "outperform" while Needham & Co. upped its rating from "hold" to "buy." Shares of Dell (DELL) jumped by $2.31, to close Wednesday at $27.13 Dell said third-quarter net income was $677 million and earnings per share were $0.30. This compares with a profit of $606 million last year, and earlier expectations of $0.24 per share, according to a survey by Thomson Financial. At first blush, the earnings look great. Dell's gross profit margin increased to 17 percent from 15.5 percent in its disastrous second quarter. Following Hewlett-Packard Co.'s tremendous report last week, when it said it quadrupled quarterly profit, this suggests that manufacturers may not have to rely on deep discounts going forward. Dell pointed to strong sales of servers based on Advanced Micro Devices Inc. chips, suggesting that the hardware market is invigorated by competition with Intel Corp. But Dell is under investigation by the U.S. Securities Exchange Commission for possible accounting misstatements. It still has not submitted a confirmed, official earnings report. The quarter's figures, as well as prior-quarter numbers, may be restated. Also, while Dell may be doing well in the server market, its notebook sales are not rising as fast as the market in general, and HP notebook sales growth is outpacing Dell's. Adding insult to injury, HP has overtaken Dell in PC sales. So while the hardware market is doing better than expected earlier this year, the spoils may not be evenly divided. Â
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Stocks rebounded on Wednesday, pushing the S&P 500 and the Nasdaq up more than 2 percent, after investors snapped up beaten down technology shares, while the energy sector benefited from a surge in oil prices.
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U.S. stocks rose on Thursday after a key inflation gauge underscored hopes for steady interest rates and technology stocks rose after news that Dell Inc.  Chairman Michael Dell would resume his duties as chief executive.
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U.S. stocks advanced on Wednesday as  Internet and semiconductor companies led technology shares  higher and crude oil retreated from record high prices.
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Stocks advanced on Tuesday, buoyed by an optimistic outlook for technology shares and gains in oil prices that lifted energy shares.
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U.S. stocks rose on Tuesday as oil  prices declined and investors were encouraged by Monday's  stronger-than-expected earnings from technology bellwethers  International Business Machines Corp. IBM.N and Texas  Instruments Inc. TXN.N
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Stocks rose on Thursday as a gain of more than $1 a barrel in oil prices boosted shares of energy companies, including Exxon Mobil Corp. , offsetting disappointment over profit reports from Bear Stearns  and Goldman Sachs .
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U.S. stocks edged higher on Tuesday in   light trading as Chevron Corp. CVX.N gained on news it   successfully drilled for oil in the Gulf of Mexico, offsetting   a drop in Viacom Inc. VIAb.N after its chief executive quit.
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U.S. stocks advanced on Tuesday as sharply higher oil prices lifted the energy sector and Motorola Inc.  shares jumped after investor Carl Icahn said he will seek a seat on the board.
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Stocks advanced on Monday, helped by  deal news, cheaper oil and positive broker comments on the chip  sector.
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U.S. stock index futures pointed higher on Wednesday after Dell Inc.  reported better-than-expected earnings, setting the stage for gains by technology shares a day before the Thanksgiving holiday.
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U.S. stocks rose on Monday after a report showing manufacturing was still expanding lifted shares of many large industrial companies, including General Electric Co. , and a big drop in oil prices added to buying momentum.
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Stocks edged higher on Wednesday as   beaten-down energy shares including Exxon Mobil Corp. XOM.N   rebounded, while concerns about a leak investigation at   Hewlett-Packard Co. HPQ.N hurt the computer maker.
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Stocks advanced on Tuesday as talk that aluminum maker Alcoa Inc.  may be a takeover target bolstered optimism over deals and as energy shares gained with a rebound in oil prices.
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U.S. blue-chip stocks edged higher on Wednesday as a jump in crude oil prices pushed up energy shares, including Exxon Mobil Corp. , but investors were still on edge after last week's sharp sell-off.
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Tech stocks shone for a second straight day, this time with Dell in the lead after it posted a 25 percent increase in third-quarter profits and matched forecasts for its outlook.