Technology stocks bounced back Monday as downtrodden investors gingerly poked through last week's devalued market.
The Nasdaq Composite Index climbed 45.80 to 1468.90 in morning trading after plunging 16% last week. Morgan Stanley's high-tech index rose 12.80 to 374.30, and the Dow Jones Internet Index gained 2.10 to 41 points.
Shares of technology stocks hemorrhaged last week amid debilitated investor sentiment in the wake of the Sept. 11 terrorist attacks on New York's World Trade Center and the Pentagon in Arlington, Va. U.S. markets were closed for four sessions following the attacks and reopened Sept. 17, a week which saw the Nasdaq plummet 16% and the Dow Jones Industrial Average fall more than 14%.
Investors took a deep breath Monday morning before heading in to make purchases. Several tech bellwethers saw gains as investors hunted for bargains in what analysts are calling an oversold market.
Sun Microsystems rose 48 cents to $8.44, Cisco Systems climbed 53 cents to $ 12.62, while software maker BEA Systems gained 46 cents to $10.80, all on the Nasdaq Stock Market.
Microsoft gained 91 cents to $50.62 on Nasdaq. The software giant postponed the sale of its Xbox console by a week, declining to give reasons for the setback. The company also faces concerns for sales of its upcoming Windows XP operating system as consumer confidence slips.
JDS Uniphase rose 67 cents to $6.03 on Nasdaq after the company said it sees first-quarter sales of $325 million.
Compaq Computer rose 44 cents to $8.43 after Salomon Smith Barney upgraded the stock to "buy" from "neutral." Hewlett Packard, which announced its intent to buy former rival Compaq earlier this month in a deal so far met with skepticism from investors, gained 71 cents to $15.67. Both companies trade on the New York Stock Exchange.
Intuit fell $1.29 to $30.67 on Nasdaq. The company, which makes business- software products, said it agreed to buy OMware for up to about $42 million in stock and said it expects to meet its previous earnings guidance. Additionally, the company is unveiling new products for small businesses.
Verisign lost 21 cents to $38.09 on Nasdaq after the company, which controls Internet addresses, said it will purchase Illuminet for $1.2 billion in stock. Illuminet operates a system combining elements of the Internet and telephone networks. Illuminet dropped eight cents to $34.90 on Nasdaq.
Ask Jeeves rose five cents to 85 cents on Nasdaq. The company, which develops "real-language" Internet search technology, said it will now focus on software, offering a program for companies that want to operate their own information services.
Accrue Software gained a penny to 23 cents on Nasdaq after the company's shareholders approved several proposals authorizing a variety of reverse stock splits in the upcoming year.
Techs Fell 16% Last Week
Technology stocks continued their losing streak Friday, with the Nasdaq Composite Index racking up a 16% loss for the week following the terrorist attacks.
The Nasdaq Composite Index lost 47.74, or 3%, to close at 1423.19, after sliding 3.7% on Thursday. Morgan Stanley's high-tech index skidded 7.54 to 361.47, and the Dow Jones Internet Index shed 1.82 to 38.89.
Upbeat news from General Electric helped cushion the Dow industrial average's fall, but failed to lift the tech sector. GE said it still expects double-digit growth for 2001 as it trimmed its outlook in light of last week's terrorist attacks and the economic downturn (see article).
Techs declined after a tough week all across Wall Street as investors considered the threat of war and the economic repercussions of last week's terrorist attacks.
A wave of profit warnings, weakness in foreign markets and so-called triple witching, further destabilized the already shaky tech sector. Triple witching marks the simultaneous
