Tech stocks recovered along with the broader markets Wednesday after the Federal Reserve announced that it will work with other banks to ease any liquidity crunch after Tuesday's quarter-point rate cut.
led the gainers, soaring 4.4% after two Wall Street analysts said the company has plenty of growth opportunities.
A Jeffries & Co. analyst, who has a $40 price target on the stock, said potential growth areas include routing and switching, collaboration, video, and emerging markets. Video alone is a $50 billion market opportunity, he said. A Goldman Sachs analyst, who has a $36 price target on the stock, said about two-thirds of the company's sales are based on "positive trends," not tied to the economy, which limits the company's risk in a downturn. Cisco was up $1.26 to $29.27.
extended its gains from Tuesday after it issued an upbeat outlook for 2008, increased its dividend for the year and approved the repurchase of 400 million shares, or approximately 6.6% of shares outstanding as of Dec. 7. AT&T was up $2.32, or 5.9%, to $41.78.
gained 4.4% after the company's board authorized the repurchase of up to 10 million shares of stock in the open market and in privately negotiated transactions.
The company said it has also completed an offering of $1.03 billion worth of convertible junior subordinated debentures to institutional buyers. The proceeds will be used to fund future stock repurchase programs. Microchip was up $1.32 to $31.52.
gained 1.6% a day after the company's annual
analysts' meeting, where it raised financial targets and vowed to cut costs while seeking new markets for its products.
H-P said that it expects 2009 revenue to range between $117.1 billion and $118.2 billion. Analysts polled by Thomson Financial are expecting revenue of $117.9 billion. H-P shares rose $1.07 to $51.85.
fell 6.8% as analysts feared AT&T's entry into its market would negatively affect margins. A Cowen & Co. analyst downgraded the stock to neutral from outperform. Akamai was down $2.51 to $34.59.
was off $4.14, or 10.8%, to $34.15. The company said Wednesday that it has agreed to buy
wireless telecommunications business for $30 million.
Leap said the move will help the company bring its Cricket service to the Savannah, Ga. and Hilton Head, S.C. areas.