NEW YORK - Stocks managed a modest rally yesterday when investors took a break from fretting over dwindling profits and scooped up choice technologies.
Gains for computer-networking heavyweight Cisco Systems and chip makers helped the high-tech sector to snap back after three days of losses that knocked 8.5 per cent off
the value of the Nasdaq composite index.
"The market has been so weak that you're simply seeing a bounce," Peter Gottlieb, a vice-president and portfolio manager at First Albany Asset Management said.
The Nasdaq index rose 67.27 points to close at 3523.10.
It staged a late rally after spending the bulk of the day swinging in and out of positive territory.
Oracle's price fell for a second day after a Merrill Lynch analyst questioned its high price. It trimmed its losses in late trading but shed $US1 3/8 to close at $US68 1/8 - down about 2 per cent.
Intel was up $US1 11/16 to $US42, IBM rose $US4 1/16 to $US114 5/8 and H-P gained $US2 to $US95 1/2.
In London the FTSE closed mixed after late strength in drug and bank sectors countered Nasdaq-driven technology, media and telecom losses.
"We have seen a profit warning a day from the States, but it is important that the European baby is not thrown out with the US bath water," Commerzbank strategist, Michael O'Sullivan said.
He said the warnings generally related to specific companies.
"It is all about gently shaving off one sector for another, and the key story is stock picking."
