Technology stocks recovered about one-third of the ground they lost in yesterday's major sell-off, but blue chips remained unchanged as investors waited to hear Thursday's testimony from Federal Reserve Chairman Alan Greenspan.
Greenspan is scheduled to deliver his semiannual Humphrey-Hawkins testimony on monetary policy before the House Banking Committee on Thursday. The testimony can have a dramatic effect on stock and bond prices.
The Dow Jones industrial average advanced 6.65 points, or 0.1%, to 11,002.78. The Nasdaq Composite rose 29.56 points, or 1.1%, to 2,761.74. Tuesday's 3.5% plunge in the Nasdaq was its worst in more than three months.
The day's star performer among technology stocks was music distributor MP3.com (MPPP), which closed at 63-5/16 on its first day of trading. The company raised about $344 million by selling 12.3 million shares at $28 each in its initial public offering.
Computer hardware stocks were higher, except for Gateway (GTW), which declined 1-5/8 to 65-3/4. Apple Computer (AAPL) rose 1-3/16 after it unveiled its iBook laptop, which comes in blueberry and tangerine colors and has a retail price of $1,600. Some analysts had expected the iBook to come out at a lower price.
Among other hardware stocks, IBM (IBM) was up 3/4 at 129, Hewlett-Packard (HWP) advanced 1-15/16 to 112-9/16, Compaq (CPQ) added 3/8 to 26, and Dell Computer (DELL) rose 1/8 to 41-1/4.
Data storage company EMC (EMC) rose 3-1/4 to 63-5/16 after reporting second-quarter net income that was a record for the company and that exceeded analysts' estimates. EMC's revenue for the second quarter was a record $1.29 billion, 36% higher than the second quarter of 1998. Net income for the quarter was a record $289 million, up 52% compared with the second quarter of 1998.
Enterprise resource planning vendors' stocks were mixed, with Oracle (ORCL) up 5/8 to 38-1/8, SAP (SAP) up 1/2 to 33-15/16, PeopleSoft (PSFT) down 1/2 to 14, and J.D. Edwards (JDEC) down 5/8 to 16-3/8. Among supply-chain vendors, Manugistics (MANU) was down 7/32 to 14-1/8, while i2 Technologies (ITWO) was up 1-15/32 to 42-15/32.
Networking stocks were mostly flat. Cisco Systems (CSCO) rose 13/16 to 63-1/16, while Lucent Technologies (LU) added 3/16 to 70-1/8.
Internet stocks regained some of the ground they lost yesterday, with Yahoo (YHOO) jumping 9-3/4 to 151-7/8, and eBay (EBAY) rising 2-3/8 to 115-5/16.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.