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Tech stocks post solid gains
Nasdaq finishes at 2-1/2 year high as investors show enthusiasm ahead of earnings announcements.
January 12, 2004: 5:09 PM EST

NEW YORK (CNN/Money) - Technology stocks on Monday posted their highest close in 2-1/2 years as investors counted on upcoming earnings results of companies ranging from Yahoo! to Apple Computer, slated for release later in the week.

Computer Associates (CA: down $0.13 to $27.99, Research, Estimates) stock, however, faced resistance after the company said it might face civil charges for its previously disclosed improper accounting of revenue, sending its shares lower.

Earlier on Monday, Computer Associates said that it received a "Wells Notice" from the SEC, which indicated its staff is considering recommending civil enforcement for possible violations of securities laws related to recognizing revenue too early on software contracts.

The software maker has the opportunity to respond to the notice and then the SEC staff will make a recommendation regarding the charges.

The tech-laced Nasdaq index rose 24.86 points, or 1.2 percent, to 2,111.78, its highest close since July 2001. The Philadelphia semiconductor index rose 17.34 points, or 3.2 percent, to 560.65.

Elsewhere in tech land, shares of Intel (INTC: Research, Estimates) gained 18 cents at $34.15, but Microsoft (MSFT: Research, Estimates) stock lost 9 cents to $27.57, both on the Nasdaq market. Shares of Hewlett-Packard (HPQ: Research, Estimates) rose 52 cents to $24.68, while International Business Machines (IBM: Research, Estimates) shares gained 34 cents to $91.55, both on the New York Stock Exchange.

Shares in communications chip maker Broadcom Corp. (BRCM: Research, Estimates) rose sharply higher after an analyst said he thought the company could have a better fiscal first quarter than expected.

In a note Monday, CIBC World Markets analyst James Jungjohann reiterated his "sector outperformer" rating leading into the company's fiscal fourth-quarter results and said he was increasingly optimistic about the first quarter.

"Though consensus estimates are for flat revenues in (the first quarter), we believe Broadcom could buck seasonal trends and post growth of 5 percent or more," he said.

He cited strength in orders from satellite broadcaster EchoStar Communications (DISH: Research, Estimates) and said there could also be some upside to fourth-quarter revenue growth as well.

Broadcom shares were up $4.23, or 11.5 percent to $41.01 in active trading. The stock rose more than 125 percent in 2003 and is up more than 15 percent this year.

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PeopleSoft (PSFT: up $0.33 to $23.00, Research, Estimates) stock also inched higher after the software company said it plans to buy back up to $200 million of its common stock.

But a report, coming out of Europe about its battle against a hostile takeover from Oracle Corp. (ORCL: Research, Estimates), dampened the mood.

The European Commission said it had suspended its probe of Oracle's proposed $7.3 billion acquisition of PeopleSoft.

"What we do when we investigate mergers is that sometimes we might feel the need to get more information on a given product or geographical market and we have to get that from the companies," said Commission competition spokeswoman Amelia Torres.

"If the companies do not comply within a certain time, we have to send a formal decision. That stops the clock," she added.

The EU deadline for the investigation had previously been set at March 30, 2004, as it carries out an in-depth probe of the deal. A new deadline will be set once the Commission has received the information.

Separately, shares of Sirius Satellite Radio (SIRI: Research, Estimates) lost 14 cents, or 4%, to $3.30 after a published article in Barron's on Sunday said the stock may be overvalued.  Top of page


-- from staff and wire reports




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.