By Dan Gallagher, MarketWatch
SAN FRANCISCO (MarketWatch) -- Strong gains by Google Inc. and
International Business Machines Corp. in the wake of fourth-quarter
earnings reports gave a boost to the overall tech sector
Wednesday.
Shares of Apple Inc. and Netflix Inc. posted gains ahead of
their results, due after the closing bell.
The Nasdaq Composite (RIXF) rose 0.3% to 3,152 by midday, while
the Philadelphia Semiconductor Index (SOX) added 0.4% and the
Morgan Stanley High-Tech Index (MSH) gained 0.3%.
Google (GOOG) led the way, its shares gaining nearly 6.5% to
trade at $747.80. The Web search giant posted strong gains in
earnings and revenue for the fourth quarter, showing improvement in
its core ad business as well as continued losses from its Motorola
handset business.
"Google's Q4 metrics helped calm the biggest Google bear case:
that all-things-mobile were eroding its financial position," wrote
analyst Evan Wilson of Pacific Crest Securities. He lifted his
Google price target to $820 from $795.
IBM (IBM) shares also rose, up 5% to $205.76, rallying as the
Dow Jones Industrial Average component reported late Tuesday a gain
in fourth-quarter profit and projected an earnings-per-share target
for 2013 above Wall Street's consensus estimate.
Citigroup analyst Jim Suva called IBM the "best" company for IT
hardware and services. In a note to clients, he cited its
"best-in-class portfolio of products and services," maintaining a
buy rating and a $250 price target on Big Blue.
Apple (AAPL) shares moved up 1% to $510.02, as the company got
set to report results for the first quarter of fiscal 2013 after
the close.
Analysts are expecting sales of about 48 million to 50 million
iPhones, though some are worried that the company's forecast may
show weakening demand for the smartphone.
Apple's gains were significant as the stock makes up roughly 4%
of the S&P 500 (SPX) 10% of the Nasdaq Composite Index and 15%
of the Nasdaq-100.
Netflix (NFLX) shares rose 4% to $101.75. In its fourth-quarter
report, investors are likely to focus in on subscriber additions to
the company's domestic streaming business.
Also Wednesday, Advanced Micro Devices (AMD) jumped more than 9%
to $2.69 following its own fourth-quarter results, while Cree
(CREE) surged more than 19%. Texas Instruments (TXN) was down 1%
following results issued late Tuesday.
Motorola Solutions (MSI) and Molex (MOLX) were each down 2%
following their own earnings reports on Wednesday morning. Symantec
(SYMC) shares rose by 2%.
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