Stocks Rise on Tech News, Signs of Economic Gains; Nasdaq Up 3.4% on HP Profit Report
Major stock indexes climbed 2 percent or more yesterday, sparked by hints of a tech recovery and sustained by promising economic news.</br></br>The Dow Jones industrial average rose 222.14 points, or 2.6 percent, to 8845.15, and the Standard & Poor's 500-stock index rose 19.61 points, or 2.2 percent, to 933.76.</br></br>The tech-heavy Nasdaq did particularly well. Responding to better- than-expected earnings from Hewlett-Packard, the index surged 48.20 points, or 3.4 percent, to close at 1467.55, its highest level since June 19.</br></br>The hardware and software maker reported strong sales in its printer division and posted a $390 million profit for the quarter, compared with a $505 million loss a year ago. Fourth-quarter earnings of 24 cents per share, excluding charges, beat analysts' expectations by 2 cents.</br></br>That news, coming on the heels of Analog Devices' announcement of increased demand for its microchips and IBM's pledge to invest $1 billion in selling research services, signaled to investors that "things in tech land weren't as bad as previously perceived," said Ned Riley, chief investment strategist for State Street Global Advisors.