NEW YORK (CNN/Money) -
Technology stocks charged ahead Tuesday, lifted by Internet stocks such as Yahoo! Inc. and online marketplace operator eBay Inc., which is due to issue its earnings after Wednesday's close.
The tech-laced Nasdaq Composite index rose 33.24 points, or 1.8 percent, to close at 1,917.07, while the Philadelphia Semiconductor index finished 10.21 points, or 2.5 percent, higher at 423.47.
But the big news that rocked after-hours trading Tuesday was Microsoft's plan to repurchase up to $30 billion of its stock. The software giant also said it would begin issuing a quarterly dividend of 8 cents per share and issue a one-time special payout of $3 a share to stockholders.
Shares of Microsoft (MSFT: up $0.37 to $28.32, Research, Estimates), which have underperformed other technology stocks over the past year, rose to $29.14 in after-hours trade from the Nasdaq closing price of $28.32.
Sun Microsystems stock also nudged higher in after-hours trading after the network computer maker posted a quarterly profit, helped by its settlement with Microsoft, as revenue rose for the first time in 13 quarters.
Shares of Sun Microsystems (SUNW: up $0.19 to $4.11, Research, Estimates) ticked up to $4.16 in after-hours trading from its regular close of $4.11 on the Nasdaq.
Among other tech heayvweights, Yahoo! (YHOO: Research, Estimates) stock jumped more than 4.5 percent, while shares of eBay (EBAY: up $1.45 to $79.95, Research, Estimates) closed nearly 2 percent higher.
EBay is due to report earnings after Wednesday's close.
Intel Corp. (INTC: up $0.33 to $23.24, Research, Estimates) rose 1.4 percent while Cisco Systems (CSCO: up $0.52 to $21.88, Research, Estimates) shares jumped 2.4 percent.
During the regular trading Tuesday, Corning (GLW: Research, Estimates) stock rose after the maker of fiber-optic cable reported late Monday a profit versus a year-earlier loss on stronger demand for its liquid crystal display panels.
But shares of Flextronics International (FLEX: down $0.47 to $13.59, Research, Estimates) fell after the contract electronics maker signaled that its September quarter earnings may fall short of the most optimistic market forecasts.
Taser International (TASR: down $5.28 to $31.04, Research, Estimates) stock also took a beating on Tuesday even after reporting a surge in second-quarter profit and a record number of new orders. Its shares fell more than 14 percent, extending a slide on concerns over the safety of its stun guns.
-- from staff and wire reports
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