Technology Stocks Surge on IBM's Optimistic Outlook

Strategic Insights -

Technology executives' encouraging comments boosted expectations for future growth, driving technology stocks higher on Wednesday. Microsoft, Apple, and Cisco Systems led the gains, while International Business Machines saw a 2.5% increase after its CEO predicted $20 billion in new revenue by 2015. The Nasdaq Composite climbed 1.1%, and the Dow Jones Industrial Average rose 66 points, or 0.6%, to 10,814. The dollar gained against both the Japanese yen and the euro, despite strengthened European economic data. Meanwhile, financial components weakened as the U.S. Senate debated financial overhaul legislation.

Key Takeaways:

  • The Nasdaq Composite climbed 1.1% on Wednesday, led by gains in Microsoft, up 1.1%, Apple, up 1.9%, and Cisco Systems, up 2.1%.
  • International Business Machines rose 2.5% after its CEO predicted $20 billion in new revenue by 2015.
  • Intel surged 2.2% after its executives predicted a doubling in earnings and revenue.
  • The Dow Jones Industrial Average climbed 66 points, or 0.6%, to 10,814.
  • The dollar gained against both the Japanese yen and the euro.
  • European economic data strengthened, with the quarterly gross domestic product growth in the 16 countries that use the euro accelerating to 0.2% in the first three months of this year.
  • Financial components weakened as the U.S. Senate debated financial overhaul legislation, with J.P. Morgan Chase falling 0.8%, Bank of America slipping 0.3%, and insurer Travelers sliding 0.6%.
  • Gold futures continued their ascent into record territory, up 1.6% at midday, trading at $1,240 an ounce.

Statistics:

  • Nasdaq Composite climbed 1.1%, with Microsoft up 1.1%, Apple up 1.9%, and Cisco Systems up 2.1%.
  • International Business Machines rose 2.5% after its CEO predicted $20 billion in new revenue by 2015.
  • Dow Jones Industrial Average climbed 66 points, or 0.6%, to 10,814.
  • Dollar gained 0.6% against the Japanese yen and 0.7% against the euro.
  • European economic data:

+ Quarterly gross domestic product growth in the 16 countries that use the euro accelerated to 0.2% in the first three months of this year.

+ Annual GDP was 0.5% stronger from the first quarter of last year, according to a flash estimate from the European Union's Eurostat statistics agency.

  • Gold futures:

+ Up 1.6% at midday, trading at $1,240 an ounce.

+ J.P. Morgan Chase fell 0.8%, Bank of America slipped 0.3%, and insurer Travelers slid 0.6%.

Sources:

  • Euclid Infotech, distributed by Contify.com
  • European Union's Eurostat statistics agency (no date mentioned)