Tags: Cisco | Fuels | Stock | Market; | Dow | Gains

Cisco Fuels Stock Market; Dow Gains 3

Wednesday, 08 May 2002 12:00 AM

The blue-chip Dow Jones industrial average gained 305.28 points, or 3.10 percent, 10,141.83, posting its biggest one-day gain since July 2001. The tech-heavy Nasdaq composite index rose soared 122.45 points, or 7.78 percent, to close at 1,696.27, the biggest single-day rise in nearly seven months.

The broader New York Stock Exchange composite index gained 13.87 points to 579.22. Standard & Poor's 500 index jumped up 39.35 to 1,088.84. The American Stock Exchange composite index pushed up 3.24 points to 949.34. Wilshire 5000 Index rose 348.69 points to close at 10,328.87.

Big Board volume jumped to an estimated 1.54 billion shares. Nasdaq volume soared to 2.38 billion shares.

Stocks climbed from the opening bell with a big dose of the credit going to Internet equipment giant Cisco Systems. The company was connected with two words, "optimistic outlook," and its share price climbed nearly 22 percent in a single day.

Euphoria over Cisco spilled over across the board, but particularly encouraged investors to buy high-tech shares.

Upbeat earnings from QLogic and a possible settlement between the New York attorney general's office and Merrill Lynch also buoyed Wall Street investors.

Cisco Systems late Tuesday reported fiscal third-quarter earnings of 11 cents a share before extraordinary items, 2 cents a share above the consensus forecast of analysts surveyed by First Call, and far better than the 3 cents a share earned a year earlier. Revenue was $4.8 billion, a bit shy of the $4.86 billion forecast.

Meanwhile, QLogic Corp., which makes computer gear for storage area networks, posted a 26 percent drop in net income in its fiscal fourth quarter as corporations slashed spending on information technology, but forecast revenues would rise in the next two quarters. But QLogic also said it would post sequential revenue gains in its current first quarter and the following quarter as demand starts to improve.

Meanwhile, U.S. Treasury prices head lower. The 10-year bond tumbled 1 7/32 to 97 13/32. Its yield, which moves in the opposite direction of its price, rose to 5.22 percent from 5.05 percent late Tuesday.

In Europe, stock prices ended sharply higher in active trading in London, Frankfurt and Paris. Analysts said European stocks were lifted as technology and telecom stocks staged a relief rally on the back of upbeat results from Cisco.

In Asia, prices on the Tokyo Stock Exchange stocks ended higher after the Federal Reserve left short-term interest rates unchanged and tech bellwether Cisco Systems released favorable earnings. Japan's blue-chip Nikkei Stock Average of 225 selective issues, which fell 234.97 points Tuesday, rebounded 204.71 points, or 1.8 percent, to 11,520.75.

Copyright 2002 by United Press International.

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The blue-chip Dow Jones industrial average gained 305.28 points, or 3.10 percent, 10,141.83, posting its biggest one-day gain since July 2001. The tech-heavy Nasdaq composite index rose soared 122.45 points, or 7.78 percent, to close at 1,696.27, the biggest single-day rise...
Cisco,Fuels,Stock,Market;,Dow,Gains
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2002-00-08
Wednesday, 08 May 2002 12:00 AM
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