Tech Inflates on Benign Data

With the good vibes about the economy, the volatile Nasdaq Composite soaked up the market's optimism, finishing up 0.8% to 2490.50.

Cisco's shares surged 3.3% Wednesday, while the Philadelphia Semiconductor Sector Index added 1.6%. Components such as Infineon Tech(IFX Quote) and Broadcom(BRCM Quote) jumped 10.5% and 4.7%, respectively. Infineon inked a deal with Nokia (NOK Quote), and Morgan Stanley upped its recommendation to overweight on Broadcom.

After the closing bell, earnings announcements were strong. Disney(DIS Quote) beat expectations, and its shares were up 1.6% in after-hours trading. Electronic Data Systems(EDS Quote) doubled its profits, sending shares up 4.8% in postclose trading.

So as the markets move into the heart of February, the DJ may be playing a remix of some old '70s classics, but inflation is nowhere near the turntable.