Real Story: Motorola Rumors, Tech Rallies

Ed Zander's canceled speech spurs speculation as tech leads a pre-Fed rally.
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Technology stocks led a modest rally ahead of Wednesday's FOMC announcement and accompanying statement, Aaron Task says on Tuesday's "Real Story" podcast.

Overall trading was quiet, but there was a lot of "noise" in tech stocks such as

Motorola

(MOT)

,

Palm

(PALM)

and

Oracle

(ORCL) - Get Report

, which rallied ahead of its postclose earnings report and after-hours as its results bested expectations.

Motorola rallied after CEO Ed Zander canceled a scheduled appearance at a wireless conference, spurring speculation that there's either a deal in the works or a change in Motorola's executive suite. Speculation of a potential takeover was also helping spur Palm's rally.

Meanwhile,

Juniper Networks

(JNPR) - Get Report

,

SanDisk

(SNDK)

, and

MEMC Electronic Materials'

(WFR)

benefited from positive sell-side commentary.

The tech gainers helped the

Nasdaq Composite

rise 0.6% to 2408.2, while the

Dow Jones Industrial Average

gained 0.5% to 12,288 and the

S&P 500

rose 0.6% to 1411.

Task says the question is whether tech leadership is a contrarian indicator or a sign of more gains to come.

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