Call it a good old-fashioned rally, or a brief respite from the pain, but buyers clearly stepped back into the market this morning and kicked many stocks into the green. The telecom sector was enjoying the bounce.
Nasdaq Telecommunications Index
recently gained 3.2% while the
Philadelphia Stock Exchange Wireless Telecom Sector
climbed 3.9%. The telecom sector has been hit by a string of profit warnings prompted by slowing sales. But boosting buying today is better-than-expected news from Finnish phone giant
. The company issued a much-anticipated
warning (or should we say forecast?) that seemed tame compared to the market's worst fears.
Nokia said its sales are slowing, but it would still hit earnings targets. It also said its inventory situation is looking good, a happy note for investors concerned about growing inventories at a multitude of companies. Nokia was popping 14.5% to $25.01. It was helping rivals, too.
gained 44 cents, or 3.11%, to $14.94 and
, which has fallen more than 70% from its 52-week high of $25.84, recently climbed 28 cents, or 4.8% to $6.19.
Internet companies are also on the upswing.
TheStreet.com Internet Sector
index, or the
DOT, was gaining 2.4%. The index, made up of 24 companies involved in commerce, service and software for the Web, is near its 52-week low. Today it is getting help from networker
, up 2.6% to $58.75, and online retailer
, gaining 3.5% to $11. Even
, which continued its fall out of favor last week, got a lift of 2% to $15.63.
The general goodwill (or benign will) among investors even spilled into some areas that were hit with negative news this morning. The airline industry, charted by the
American Stock Exchange Airline Index
heard from United Airline's parent,
, which warned it would have a
first-quarter shortfall. The index was lately up 1.5%, while United also gained, up 2.3% to $35.91.
UAL's warning highlights the
troubles in the airline sector, yet the market seemed willing to overlook the problems this morning.
were also climbing, despite the recent news that each would fall short of earnings expectations.
As money swung back into tech, oil was on the losing end. The
Philadelphia Stock Exchange Oil Service Index
lately lost 2.3%, while the
American Stock Exchange Oil Index
fell 0.7%. The energy sector has suffered from speculation that
, the cartel of oil-exporting countries, could cut output to prop up declining oil prices. Yesterday, the
International Energy Agency
, the body that represents petroleum-consuming nations, revised its projection for growth in oil demand downward and reported that consumption in China and India had fallen sharply in December.
Gold was on the decline, too, as investors found tech names they wanted to buy. The
Philadelphia Stock Exchange Gold & Silver Index
lately fell 2.8%.