Business & Finance
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7/8/2003
05:24 PM
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TECH STOCKS: Buyouts Giving Investors Hope

At least some believe the lengthening string of acquisitions indicates a market bottom has been reached.

For the second session in a row, tech stocks climbed. The Nasdaq-100 Index tracking stock, for example, rose 1.1%, to $32.25 a share, on volume of 79.5 million shares.

Market watchers say business acquisitions helped fend off too much selling after Monday's big gains. "It suggests that there is hope, that business leaders have confidence in this recovery and are willing to do some deals," Jeff Kleintop, chief investment strategist for PNC Financial Services Group, told The Associated Press.

Of course, the stock of acquiring companies usually falls on news of buyouts. EMC shares are a case in point. They fell 4.3%, or 50 cents, to close at $11.24 for the day. EMC says it's buying Legato Systems Inc. in an all-stock transaction valued at around $1.2 billion. Legato's shares rose 8.9%, or 81 cents, to close at $9.91 a share, one of the top winners for the day.

The Nasdaq index rose 1.5%, or 25.75 points, to close at 1,746.46. Our InformationWeek 100 rose 1.3%, or 3.53 points, to rest at 266.12. The S&P 500 rose 0.3%, or 3.42 points, to end at 1,007.84, while the Dow rose 6.3 points, or 0.07%, to close at 9,223.09.

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