Market Wrap-Up: Tech Stocks Gain - InformationWeek
IoT
IoT
News
News
7/23/1999
03:45 PM
50%
50%

Market Wrap-Up: Tech Stocks Gain

Concerns about possible future increases in interest rates dragged down blue-chip stocks and government bond prices Friday. Technology stocks were more stable, however, as companies in the computer hardware segment gained.

Remarks made by Federal Reserve Board Chairman Alan Greenspan during his Humphrey-Hawkins testimony earlier this week have caused some investors to believe the Fed will increase rates again. Fears of a rate increase caused the Treasury's 30-year bond to decline 17/32 to yield 6.003%, its highest yield since July 9. Likewise, the Dow Jones industrial average declined 58.26 points to 10,910.96

The Nasdaq composite, however, gained 7.96 to 2,692.40, a small recovery from yesterday's technology stock rout.

Gateway (GTW) was the big gainer among computer hardware stocks, adding 10-1/8 to close at 73. The PC maker's stock was upgraded at several brokerage firms late yesterday and today after it released second-quarter profits that were above analyst expectations. Gateway said Thursday that its net income for the second quarter ended June 30 rose to $89.2 million, or 56 cents per share, from $60.7 million, or 38 cents a share, a year earlier. The company's results were aided by revenue from its non-PC businesses, such as software and providing Internet service.

The stocks of other computer hardware companies also were strong today, with Dell Computer (DELL) rising 1-3/8 to 41, IBM (IBM) adding 7/8 to 124-3/4, Hewlett-Packard (HWP) rising 2-1/2 to 107-3/4, and Sun Microsystems (SUNW) jumping 3-3/16 to 70-3/8. Sun yesterday reported that its revenue for the fourth quarter ended June 30 were a record $3.5 billion, up 22% from the same period in 1998. Revenue from Sun's enterprise services business rose by 38% in the quarter. Net income for the quarter reached an all-time high of $395 million, a 37% increase from $288 million in the 1998 period, excluding a charge related to an acquisition.

Compaq (CPQ) declined 1/2 to 24-1/2, even though its stock was upgraded to "outperform" from "neutral" at Morgan Stanley Dean Witter. The company yesterday named Michael Capellas as CEO and president, effective immediately. Capellas has been Compaq's chief operating officer since June 2.

Enterprise resource planning vendors' stocks were mixed, with SAP (SAP) rising 3/4 to 34-3/8, J.D. Edwards (JDEC) declining 1/2 to 16, PeopleSoft (PSFT) adding 11/16 to 14-1/16, Oracle (ORCL) dipping 1/16 to 36-3/16, and i2 Technologies (ITWO) losing 1/8 to 32.

Networking stocks also were mixed, with Lucent Technologies (LU) dropping 1-1/8 to 67-1/8, Nortel Networks (NT) rising 2 5/16 to 86-3/16, Cisco Systems (CSCO) adding 1-13/16 to 62-15/16, and Cabletron Systems (CS) dropping 3/16 to 12-15/16.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll