Techs rise from the ashes

March 16, 2000: 5:50 p.m. ET

Sector helps lift Nasdaq from correction territory; dot.coms, chips lead

NEW YORK (CNNfn) - Technology stocks took a turn for the better Thursday, sending issues across most segments higher after three consecutive sessions of sharp losses.
    Internet and semiconductor issues were at the front of an afternoon rally that helped pull the tech-rich Nasdaq composite index out of correction territory to finish 134.77 higher at 4,717.39, a 2.94 percent rise on the day. Meanwhile, the blue chips soared, sending the Dow Jones industrial average nearly 5 percent higher.
    Although the Nasdaq ended higher Thursday, the week's earlier losses had pulled the index well below its high of 5,048.62, reached just last week.
    But some observers are calling this week's downturn a minor blip in an otherwise strong market segment.
    "I find it incredulous that you can take a two-year bear market in the Dow and reverse it in two days," said Larry Rice, chief investment officer at Josephthal Lyon & Ross "So I'm not sure this is too sustainable past another day or so before the money flows back into Nasdaq."

Shares of database software vendor Oracle (ORCL: Research, Estimates) were among the most actively traded on Nasdaq Thursday. More than 47.7 million shares changed hands, and they ended the session up 3-5/16 at 81-15/16, a 4.2 percent gain on the day.
    Cisco Systems (CSCO: Research, Estimates) shares also were among the biggest Nasdaq movers, adding 3-1/32 to 131-21/32, a 2.4 percent gain. The networking equipment giant on Thursday announced that it would buy two separate companies for a combined total of roughly $501 million in stock.
    Peapod shucked as CEO steps down
    Internet grocer Peapod (PPOD: Research, Estimates) was Thursday's biggest Nasdaq loser, sliding 4-3/32, or 52.4 percent, to 3-32/32 after the company announced its chief executive's resignation. The Chicago-based firm said that it is seeking alternative financing and is not sure it can continue operations.
    Meanwhile, most other dot.coms headed higher, lifting the Dow Jones composite Internet index 13.51, or 3 percent, to 457.76 after bottoming out at an intraday low of 421.26 in late-morning activity.

Infospace.com (INSP: Research, Estimates) was among the biggest winners. Shares of the company, which provides information and commerce infrastructure services to wireless devices, merchants and Web sites, added 29-15/16 to 225-1/16, a 15.3 percent gain on the day.
    Online auctioneer eBay (EBAY: Research, Estimates) also gained sharply, ending the session up 30, or 15.8 percent, at 219-1/2. Meanwhile, Web portal Yahoo! (YHOO: Research, Estimates) added 11-11/16 to 17-3/16, a 7.4 percent rise on the day. Shares of both companies were beaten down Wednesday amid reports that the two companies had ceased discussions regarding a merger of strategic partnership.
    Meanwhile, business-to-business Internet outfits posted mixed results.
    On the upside: CommerceOne (CMRC: Research, Estimates) shares ended the day 16-1/2, or 8 percent, higher at 222-1/2; VerticalNet (VERT: Research, Estimates) ended the day up 13-1/16 at 230-3/8, a 6 percent gain; Internet Capital Group (ICGE: Research, Estimates) edged up 5/8 to 117-3/8; Razorfish (RAZF: Research, Estimates) shares added 5/16 to 32-3/8.
    B2B Web companies heading lower Thursday included SciQuest.com (SQST: Research, Estimates), down 12-5/16, or 21 percent, at 46-5/16; NeoForma.com (NEOF: Research, Estimates), which slid 4-3/4 to 32, a 12.9 percent decline; and pcOrder.com (PCOR: Research, Estimates), off 1-5/16, or 5.4 percent, at 22-15/16.
    Chips recover from late-morning sell-off
    Semiconductor issues also bounced high on Thursday after sinking in late morning trade.
    The Philadelphia Stock Exchange's semiconductor index, or Soxx, a key chip-industry barometer, ended the session 25.78, or 2.2 percent, higher at 1,227.12.

    Communications chipmakers were among the day's biggest gainers. Shares of Broadcom (BRCM: Research, Estimates) added 24-3/4, or 13.2 percent, to 212-11/16. PMC-Sierra (PMCS: Research, Estimates) shares gained 19, ending the session 10.2 percent higher at 205.
    Suppliers of analog chips, which are used to convert real-world signals such as images and sound into a digital format usable by computers and other electronic devices, also rose sharply.
    Analog Devices (ADI: Research, Estimates) added 8-1/2 to 75-1/2, a 12.7 percent rise on the day. Micrel (MCRL: Research, Estimates) shares gained 12-15/16, ending the session 14.6 percent higher at 101-3/4. Anadigics (ANAD: Research, Estimates) added 5-9/16, or 6.1 percent, to 96.
    PC microprocessor giant Intel (INTC: Research, Estimates) rose 4-7/8 to 125-1/16, a 4 percent gain on the day. Meanwhile, Intel rival Advanced Micro Devices (AMD: Research, Estimates) edged down 1/16 to 49-3/16.
    Seagate at front of hardware rally
    Computer equipment makers also headed higher Thursday. The Goldman Sachs computer hardware index ended the session 13.68 higher at 585.31, a 2.4 percent rise on the day.
    Computer disk-drive maker Seagate Technology (SEG: Research, Estimates) was among the day's biggest gainers, adding 5-1/4 to finish 8.6 percent higher at 66-1/4. Shares of Read-Rite (RDRT: Research, Estimates), which makes components used in disk drives, also gained sharply, rising 11/32, or 7.6 percent, to 4-7/8.
    Apple Computer (AAPL: Research, Estimates) shares ended up 5-5/16, or 4.6 percent, at 121-9/16. Dell (DELL: Research, Estimates) added 1-5/16 to 55, a 2.4 percent rise. IBM (IBM: Research, Estimates) shares added 2 to 109. Hewlett-Packard (HWP: Research, Estimates) edged up 1 to 133.
    On the downside, Compaq (CPQ: Research, Estimates) shares slipped 1/2 to 29-1/2, and Gateway (GTW: Research, Estimates) fell 2-1/8, finishing 3.7 percent lower at 55-7/8.
    Software shines; Adobe soars ahead of earnings
    Software vendors also headed mostly higher Thursday, led by Adobe Systems (ADBE: Research, Estimates), which added 10-7/8 to 94-7/16, a 13 percent gain ahead of its fiscal first-quarter financial results, which the company released after the closing bell.
    The company, which makes graphic design, publishing and imaging software for Web and print production, reported operating earnings of $64.6 million, or 51 cents per diluted share. Analysts polled by earnings tracker First Call had expected Adobe to turn a profit of 43 cents per share during the quarter.
    Check Point Software Technology (CHKP: Research, Estimates)
    Verisign (VRSN: Research, Estimates) recovered its earlier losses, ending the session 10-7/16, or 5 percent, higher at 219-1/8.
    Intuit (INTU: Research, Estimates) shares added 1-7/8 to 51-15/16, a 3.8 percent gain. Executives at the personal finance software maker on Thursday said the company is on track to meet its revenue and operating income targets for the year. And at an analyst conference, Steve Bennett, Intuit's president and chief executive officer forecast that the company will grow its revenue and operating income by more than 20 percent in fiscal 2001 on a pro forma basis.
    "The Internet is creating more possibilities for success than ever before for our company. Every major division within the company is experiencing record results in terms of volume, share, and\or profits," Bennett said.
    Intuit provides content to CNNfn.com.
    Microsoft (MSFT: Research, Estimates) shares ended unchanged at 95-3/8. The company on Thursday said it is launching a joint venture aimed at cashing in on the $1 trillion-a-year mortgage industry by simplifying the mind-numbing process of buying a home.
    Software makers on the downside Thursday included SAP (SAP: Research, Estimates), off 5/8 at 71-13/6; Informix (IFMX: Research, Estimates), down 3/4, or 4 percent, at 17-15/16; and Remedy (RMDY: Research, Estimates), which slid 3-1/8 to 49-1/16, a 6 percent decline on the day.

--from staff and wire reports