Updated from 2:50 p.m. EDT
Tech stocks were rallying along with the wider market Tuesday, as several big names and firms covering them offered optimistic outlooks.
LM Ericsson Telephone
climbed 5.5% after the
reported that the wireless network provider reaffirmed its expectation for mid-single-digit growth for two popular mobile handset markets. Shares gained $2.01 to close at $38.26.
was up 3.8%, after JPMorgan said the Internet auction site's new listings rose 6.1% year over year. Shares gained $1.32 to close at $36.31.
Ericsson and eBay are components of the Nasdaq 100, which was rising almost 29 points to about 1989.
climbed 4.4% after
boosting its first-quarter sales and earnings outlook late Monday.
Western Digital now expects earnings of 61 cents to 65 cents a share on revenue of between $1.6 billion to $1.65 billion. The company previously had forecast earnings of between 43 cents to 47 cents a share on revenue of between $1.45 billion to $1.5 billion. Analysts polled by Thomson Financial expect earnings of 47 cents a share on revenue of $1.49 billion. Shares gained 99 cents to $23.40.
traded actively after the software maker said it was acquiring Swiss IT software provider
. Terms of the deal were not disclosed. Shares rose earlier in the day but closed down slightly at $76.65.
Smith Micro Software
, which makes data compression programs such as StuffIt, jumped 7.2% after it said it had signed an agreement with VMware to publish VMware Fusion. The program allows Mac users to run PC applications. Terms of the deal were not disclosed. Smith Micro shares rose $1.10 to close at $16.39.
jumped 9.8% after the Chinese telecom software provider said its board approved a plan to buy back up to 3 million shares. The repurchase plan constitutes up to 7% of the company's outstanding stock. Shares gained 72 cents to close at $8.05.
Among the losers of the day,
Smart Modular Technologies
fell 9.7% after the chipmaker offered a disappointing fiscal fourth quarter and 2008 outlooks and was downgraded by three firms. The company expects fourth-quarter sales of between $160 million and $165 million, down between 16% and 19% from the same period a year ago. The company sees earnings of 21 cents to 23 cents a share, which include 3 cents to 5 cents a share related to a release of a deferred tax valuation allowance. Analysts polled by Thomson Financial expected earnings of 24 cents a share on revenue of $206.7 million.
For fiscal 2007, the company expects 88 cents to 90 cents a share on sales of between $823 million to $828 million. Analysts expect earnings of 91 cents a share on revenue of $869.5 million. Citigroup and Needham downgraded the stock to hold from buy and JMP Securities downgraded it to market outperform from strong buy. Shares lost 87 cents to close at $8.15.