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US stocks rose yesterday as a range of technology companies posted results that showed the sector's resilience in the face of an economic slowdown.
The Nasdaq gained 1 per cent after Broadcom, a top chipmaker for cell phones, beat its quarterly revenue target. The results fuelled a 4.1 per cent jump in an index of semiconductor stocks and set a positive tone for the entire sector.
Apple shares, which helped lead the Nasdaq's gains during the regular session, declined 2.8 per cent in after-hours trading as it reported quarterly results.
Boeing drove the Dow industrials higher after news that strong deliveries of commercial planes boosted its profits. Companies like Boeing with big international sales have outperformed companies with a more domestic focus.
"The four industries that provided leadership last year have been outperforming: energy, materials, industrials and technology. Those are the most globalised sectors, so it's not too surprising that they're doing well," said Brian Gendreau, investment strategist at ING Investment Management, in New York.
The Dow Jones industrial average rose 42.99 points, or 0.34 per cent, to end at 12,763.22.
The Standard & Poor's 500 Index gained 3.99 points, or 0.29 per cent, to 1379.93.
The Nasdaq Composite Index climbed 28.27 points, or 1.19 per cent, to close at 2405.21.
Shares of iPod and iPhone maker Apple fell 2.8 per cent to US$158.35 ($200) in extended-hours trading after it gave a profit outlook for its current quarter below Wall Street's estimates and its CFO said the company sees third-quarter gross margins flat with the second quarter. The stock ended the regular session up 1.7 per cent, or US$2.69, at US$162.89 on Nasdaq.
Shares of Broadcom, which cited strength in wireline, enterprise and broadband, jumped 16.3 per cent to US$27.39 on the Nasdaq, during the session.
Also this reporting period, investors cheered results by IBM, Intel and Google. Shares of Boeing jumped 4.5 per cent to US$82.09.
Shares of property and casualty insurer Safeco soared 45.8 per cent to US$65.94 and topped the list of biggest percentage gainers on the New York Stock Exchange after diversified insurer Liberty Mutual group said it agreed to buy the company for US$6.2 billion in cash.
The Dow and S&P briefly turned lower around the middle of the day as shares of Ambac Financial Group slid 42.6 per cent to US$3.46, its worst slide in more than three months, while shares of rival MBIA dropped 33.8 per cent to US$8.79.
An S&P index of financial shares was down 0.8 per cent.
Marlboro cigarette maker Philip Morris International, gained 3.9 per cent to US$52 after raising full-year earnings forecast.
- REUTERS
