By Benjamin Pimentel
Technology stocks advanced Thursday morning, as the Nasdaq
Composite Index topped the 2,000 mark for the first time since
October 2008.
The Nasdaq (RIXF) gained more than 35 points, or about 2%, to
2,006. The last time the tech-heavy index was at that level was in
October last year.
"I think one of the factors driving it is the interest in tech
at this point in the cycle," analyst Crawford Del Prete of
International Data Corp. said in an e-mail interview. "Tech was
beaten down early, and the perception that as the down cycle
passes, tech will bounce."
But he also cautioned, "I think the market is getting ahead of
reality, as the underlying demand for tech does not feel as strong
as the market might indicate."
The chip sector was a main driver once again as the Philadelphia
Semiconductor Index (SOX) rose more than 2%, on gains from Intel
Corp. (INTC), Advanced Micro Devices (AMD) and SanDisk Corp.
(SNDK)
But tech's other big guns also pitched in, as shares of Google
Inc. (GOOG), Microsoft Corp. (MSFT), Dell Inc. (DELL) and Apple
Inc. (AAPL) posted solid gains.
One of the exceptions was Symantec (SYMC), which lost more than
11% a day after the security software maker posted a sharp drop in
quarterly profit.
Yahoo (YHOO) also shed more than 4%. The Web portal continues to
feel the fallout from its search deal with Microsoft, which many on
Wall Street are calling a disappointment relative to
expectations.