Technology Stocks Lift Dow 27 Points; Strong Earnings by Intel Help Push Nasdaq Index to Record High
Technology stocks lifted the market today as strong earnings reports by chipmaker Intel and other key companies eased worries about sluggishness in the computer industry. Indexes of smaller companies, heavily weighted with technology stocks, set new records.</br></br>The Dow Jones industrial average rose 27.10 points to 5620.02, skipping back above the 5600-mark again. In just four sessions, the barometer of big U.S. companies has erased two-thirds of its recent 200-point slide, which was caused by interest rate and inflation worries.</br></br>Broader-market indicators made gains too, with the Nasdaq composite index rising 14.48 to 1124.92, a record close, as investors reacted to Intel's better-than-expected results for the first quarter. The Nasdaq's previous high of 1118.10 was reached April 4.</br></br>Calling demand for personal computers solid, Intel also issued a modestly upbeat outlook for the current quarter. The enthusiasm generated by Intel's report was compounded by similarly strong showing in Sun Microsystems' latest earnings statement, also released after the markets closed Monday.</br></br>In active Nasdaq Stock Market trading, Intel rose 4 5/16 to 64 7/8 and Sun Microsystems climbed 4 7/16 to 50 3/4. Cisco Systems rose 1 13/16 to 46 1/8. The enthusiasm for technology issues spilled over to the NYSE, where Motorola advanced 1 1/8 to 58 1/8, Compaq Computer rose 3/4 to 40 1/2 and IBM, a Dow component, gained 1 3/8 to 115 1/2.