US stocks rose yesterday as a range of technology companies posted results that showed the sector's resiliency in the face of an economic slowdown.
The Nasdaq gained 1 percent after Broadcom Corp, a top chipmaker for cell phones, beat its quarterly revenue target. The results fueled a 4.1 percent jump in an index of semiconductor stocks and set a positive tone for the entire sector.
Apple Inc shares, which helped lead the Nasdaq's gains during the regular session, declined 2.8 percent in after-hours trading as it reported quarterly results.
Boeing drove the Dow industrials higher after news that strong deliveries of commercial planes boosted its profits. Companies like Boeing with big international sales have outperformed companies with a more domestic focus.
"The four industries that provided leadership last year have been outperforming: energy, materials, industrials and technology. Those are the most globalized sectors, so it's not too surprising that they're doing well," said Brian Gendreau, investment strategist at ING Investment Management, in New York.
The Dow Jones industrial average rose 42.99 points, or 0.34 percent, to end at 12,763.22. The Standard & Poor's 500 Index gained 3.99 points, or 0.29 percent, to 1,379.93. The Nasdaq Composite Index climbed 28.27 points, or 1.19 percent, to close at 2,405.21.
Shares of iPod and iPhone maker Apple fell 2.8 percent to US$158.35 in extended-hours trading after it gave a profit outlook for its current quarter below Wall Street's estimates and its CFO said the company sees third-quarter gross margins flat with the second quarter. The stock ended the regular session up 1.7 percent, or US$2.69, at US$162.89 on Nasdaq.
BROADCOM LEAPS, BOEING CLIMBS
Shares of Broadcom, which cited strength in wireline, enterprise and broadband, jumped 16.3 percent to US$27.39 on the Nasdaq, during the session.
Also this reporting period, investors cheered results by IBM, Intel Corp and Google Inc.
Shares of Boeing jumped 4.5 percent to US$82.09.
Shares of property and casualty insurer Safeco Corp soared 45.8 percent to US$65.94 and topped the list of biggest percentage gainers on the New York Stock Exchange after diversified insurer Liberty Mutual group said it agreed to buy the company for US$6.2 billion in cash.
AMBAC SINKS ON SUBPRIME WOES
The Dow and S&P briefly turned lower around midday as shares of Ambac Financial Group Inc slid on worries about the bond insurer's outlook and investors fretted anew about the impact of the subprime mortgage fallout.
Early in the day, Ambac posted a wider-than-expected first-quarter loss.
Ambac plunged 42.6 percent to US$3.46, its worst slide in more than three months, while shares of rival MBIA Inc dropped 33.8 percent to US$8.79. An S&P index of financial shares was down 0.8 percent.
Also on the up side was Marlboro cigarette maker Philip Morris International Inc, which raised its full-year earnings forecast, citing currency benefits.
Philip Morris gained 3.9 percent to US$52.
Trading was moderate on the NYSE, with about 1.35 billion shares changing hands, below last year's estimated daily average of roughly 1.90 billion, while on Nasdaq, about 2.18 billion shares traded, just below last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by 8 to 7 while advancers beat decliners on the Nasdaq by about 15 to 13.