By Rex Crum
Tech stocks added to gains as trading progressed Thursday as
advances from sector leaders such as Cisco Systems Inc. and
Qualcomm Inc. helped power a rally across the sector.
Cisco (CSCO) shares remained up by 52 cents at $23.82 after the
networking-gear maker posted first-quarter results late Wednesday
that topped Wall Street analysts' forecasts. Cisco reported a
profit of $1.8 billion, or 30 cents a share, on $9 billion in
revenue.
Qualcomm (QCOM) shares were also on the rise, climbing $2.09, or
5%, to $43.67. Late Wednesday, the wireless technology company
reported mixed fourth-quarter results, but also said it extended a
license agreement with Samsung, one of its top customers.
Electronics contract manufacturer Sanmina-SCI Corp. (SANM)
shares surged $1.73, or more than 26%, to $8.36 after the company
cut its fourth-quarter loss.
Late Wednesday, Sanmina said it lost $32.3 million, or 41 cents
a share, compared with a loss of $485.2 million, or $5.48 a share,
during the same period a year ago. Revenue fell 21% to $2.35
billion.
However, Sanmina's chief executive, Jure Sola, said the company
believes the worst of the recession is over and expects demand to
rise in 2010.
With Cisco, Qualcomm and Sanmina leading the way, the tech-heavy
Nasdaq Composite Index (RIXF) rose more than 43 points, or 2%, to
2,100. The Morgan Stanley High Tech 35 Index (MSH) climbed 2% and
the Philadelphia Semiconductor Index (SOX) was up 2.4%.
Personal navigation device maker Garmin Inc. (GRMN) rose $1.21 a
share, or 4.5%, to $28.05 despite receiving an ratings downgrade
from RBC Capital Markets. RBC analyst Mark Sue cut his rating on
Garmin's stock to underperform from sector perform saying that
Garmin may see more competition as smartphone makers continue to
add GPS technology to their products.
Gains also came from video-game publisher THQ Inc. (THQI), which
edged up by 3 cents a share to $5.05, and on-demand corporate
software company Netsuite Inc.(N), up 60 cents a share, or 4%, to
$15.25. Both companies reported quarterly results late
Wednesday.
More earnings reports after the market close were expected from
graphics chip maker Nvidia Corp. (NVDA) and video game publisher
Activision Blizzard Inc. (ATVI).
Activision's outlook is also expected to garner attention due to
the upcoming release of "Call of Duty: Modern Warfare 2" and its
impact on the holiday shopping season.
Other advancers included Apple Inc. (AAPL), Microsoft Corp.
(MSFT), Hewlett-Packard Co. (HPQ), IBM Corp. (IBM), Google Inc.
(GOOG) and Yahoo Inc. (YHOO).