Technology stocks rose today as semiconductor and computer hardware issues advanced strongly for the second day in a row. Industrial stocks, by contrast, declined slightly in quiet trading.
Shortly before 4 p.m. EDT, the Dow was down 6.97 to 10,972, while the Nasdaq composite index was up 26.53, or 1%, to 2,705.86.
Today's star performer among tech stocks was online drug store Drugstore.com (DSCM), which closed its first day of trading at 50, about 180% above its initial offering price. The company raised $90 million by selling 5 million shares at $18 apiece. Drugstore.com, which has seen only $4.2 million in sales since its inception, now has a market value of more than $2 billion.
Strong performances by semiconductor issues led today's technology stock gains. The Philadelphia Semiconductor Index rose 2.8% to 509.71. Intel (INTC), the industry giant, rose 2-13/16 in late afternoon trading to 70-3/8. Intel's stock rose 7% yesterday after SG Cowen & Co. analyst Drew Peck raised his rating on the company to "buy" from "neutral."
Other semiconductor stocks followed Intel's lead. In late afternoon trading, Texas Instruments (TXN) jumped 5-9/16 to 148-9/16, Micron Technology (MU) rose 4 to 61-7/8, and Lattice Semiconductor (LSCCC) increased 1-7/16 to 58-3/4.
Stocks of all major PC makers rose today. In late afternoon trading, Hewlett-Packard (HWP) rose 9/16 to 109-13/16, Dell (DELL) jumped 9/16 to 42-11/16, IBM (IBM) rose 1-1/2 to 127-3/4, Gateway (GTW) jumped 3-1/16 to 77-15/16, and Apple Computer (AAPL) rose 11/16 to 54-3/8.
After today's close, Compaq (CPQ), the nation's largest PC maker, reported a second-quarter loss of $184 million. The company also said it expects to cut 6,000 to 8,000 jobs and take a charge of as much as $900 million in the third quarter. Revenue rose 17% to $9.4 billion. Compaq's stock rose 7/16 today to 25-13/16.
Internet stocks gained back ground they lost yesterday. Yahoo (YHOO) surged 10-11/16, or 8%, to 142, while eBay (EBAY) rose 5-9/16 to 105-1/8.
Other large-cap tech stocks were higher today, with Microsoft (MSFT) up 1-7/16 to 90-1/4, Cisco (CSCO) up 7/16 to 63-3/8, and 3Com (COMS) adding 7/16 to 25-1/8 in late afternoon trading.
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
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