By Benjamin Pimentel
The tech sector rallied Wednesday, powered by an upbeat Intel
Corp. earnings report that reignited hopes of a broader
rebound.
That optimism was also highlighted by the Dow Jones Industrial
Average (DJI), which reclaimed the 10,000 mark for the first time
since October 2008.
The sector focus was squarely on Intel (INTC), the world's
biggest semiconductor company, which reported a lower profit, but
better-than-expected sales and a fourth-quarter outlook that
exceeded Wall Street's expectations.
The Santa Clara, Calif.-based chip behemoth's shares were up
1.7%, as the Nasdaq Composite Index (RIXF) advanced 1.5% to
2,172.
"Absent a double-dip recession, expect above-average financials
well into 2010," Charter Equity Research analyst Edward Snyder said
in a note.
And Intel's momentum is good news for the personal computer
manufacturers, Kaufman Bros. analyst Shaw Wu said.
"The takeaway for many PC vendors is positive," he said in a
note, citing such players as Hewlett-Packard and Apple.
Shares of H-P (HPQ) were up 2.6%, while Apple (AAPL) gained 0.7%
and Dell Inc. (DELL) rose 2.1%.
Riding on Intel's upbeat view of the near future, shares of
other chip companies also rose. Intel's arch-rival Advanced Micro
Devices (AMD), which reports its results on Thursday, saw its
shares jump 2.8%.
These gains helped set the stage for a sector-wide rally that
pushed the Morgan Stanley High Tech 35 Index (MSH) up 1.6%, while
the Philadelphia Semiconductor Index (SOX) added 1.4%.
Other gains came from major tech players including Amazon.com
(AMZN), Google Inc. (GOOG) and Oracle Corp. (ORCL).