Tech Stocks Lead the Way
09/04/07 - 04:36 PM EDT
Robert Holmes
Updated from 4:16 p.m. EDT
Stocks in the U.S. overcame a sluggish open Tuesday and went into rally mode, closing higher amid an advance in the technology sector. The Dow Jones Industrial Average finished with a gain of 91.12 points, or 0.68%, at 13,448.86. The S&P 500 added 15.43 points, or 1.05%, at 1489.42. The tech-heavy Nasdaq Composite surged 33.88 points, or 1.3%, to 2630.24, its fourth straight winning session. "People came back from vacation with money and it's burning a hole in their pocket," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "Tech is major beneficiary of today's move as it has the least amount of credit concern attached to it. Everyone is enamored with tech stocks again and wants to get into the sector." Among tech shares, Yahoo! (YHOO Quote - Cramer on YHOO - Stock Picks) jumped 5.5% after Bear Stearns named the Internet portal one of its top picks. Apple (AAPL Quote - Cramer on AAPL - Stock Picks) rose 4.1% a day before it is expected to unveil an update to its iPod line of products. General Motors (GM Quote - Cramer on GM - Stock Picks) was a bright spot on the Dow. The automaker posted an unexpected 6.1% rise in auto sales last month, and its shares rallied 3.8% to close at $31.92. Rival Ford(F Quote - Cramer on F - Stock Picks) said that sales fell 14.4% last month. Chrysler, now only 20%-owned by DaimlerChrysler (DAI Quote - Cramer on DAI - Stock Picks), reported a 6% decline in sales. Several reports on the economy were also in the spotlight. The Institute for Supply Management said its manufacturing index slipped slightly last month to 52.9 from 53.8 in July, essentially in line with estimates.
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