Market Wrap: Tech Stocks Gain

Technology issues fared well overall today as investors continued to demonstrate relief over yesterday's nominal interest rate hike and the expectation that it will be the last rate adjustment this year.

On just over a billion shares traded, the Nasdaq gained 53.26, or 1.94%, to close at 2,805.63. The Dow faltered early in the day as an anticipated earnings shortfall from Bank One pulled the financial sector down, but it managed to recover in afternoon trading to reach a new record, closing up 42.74 at 11,326.04. The S&P 500 inched up 18.29, or 1.34%, to 1,381.79.

Among the companies represented in the InformationWeek 100 stock index, Amazon.com (AMZN) was the top performer as news of Walt Disney's plan to increase its online toy offerings boosted several consumer-focused Internet issues. Amazon gained 12-13/16 points, or 10.7%, to close at 132-7/8, while eBay (EBAY) jumped 10-1/8, or 8.52%, to 129, and Yahoo increased 5-5/8, or 3.68%, to close at 158-9/16.

Microsoft (MSFT) topped the Index's most active list, with 41 million shares traded. The stock gained 3-1/8, or 3.396%, to close at 95-5/16.

Before releasing its third-quarter earnings report, J.D. Edwards (JDEC) gained 1-5/16, or 7.9%, to 18. The report, released after the market closed, was slightly better than expected. Though the company reported a loss of $7.2 million, or 7 cents per share, analysts had projected a loss of 9 cents per share for the quarter. Other ERP vendors also gained today, with SAP (SAP) up 7/16, or 1.36%, to 32-11/16 and PeopleSoft (PSFT) climbing 1/2, or 3.48%, to 14-7/8.

In the hardware sector, Dell rose 2-5/8, or 5.66%, to close at 49. Compaq (CPQ) rose 5/8 to 24-1/8, and IBM (IBM) gained 1/2 to 122-1/2. Hewlett-Packard, however slipped 1-1/4, or 1.17%, to 105-3/16 after announcing it had taken a stake in the Delphi insurance portal.