By Rex Crum
Technology stocks shook off a shaky start to close with broad
gains Thursday, with strong gains from Activision Blizzard Inc.
Nvidia Corp. contributing to the tech sector's upbeat
performance.
Activision (ATVI) climbed 97 cents a share, or 9.6%, to $11.07
after the videogame publisher's upbeat fourth-quarter results late
Wednesday. Activision said its performance was boosted by strong
sales of its "Call of Duty: Modern Warfare 2" game.
Graphics chipmaker Nvidia (NVDA) rose 75 cents a share, or 4.6%,
to $17.12 after Roth Capital analyst Arnab Chanda raised his rating
on the company's stock to buy from hold. Chanda said Nvidia is
likely to regain some of its PC business following the upcoming
launch of its Fermi processor for PCs.
Among other leading tech stocks, gains came from Apple Inc.
(AAPL), Cisco Systems Inc. (CSCO), IBM Corp. (IBM) and
Hewlett-Packard Co. (HPQ).
The major tech-related market gauges also put in strong
performances. The Nasdaq Composite Index (RIXF) climbed more than
29 points to 2,177, while the Philadelphia Semiconductor Index
(SOX) rose more than 2% and the Morgan Stanley High Tech 35 Index
(MSH) was up 1.7%.
The tech-sector's gains were also being tied to reaction to the
better-than-expected data on first-time U.S. jobless claims.
While Activision surged, another videogame company, Glu Mobile
Inc. (GLUU), didn't fare as well. Glu Mobile shares shed 19 cents,
or more than 15%, to $1.06 after the publisher of videogame for
mobile devices reported a fourth-quarter loss of $6.9 million, or
23 cents share, on revenue of $19.1 million. While Glu Mobile
narrowed its loss from a year ago, analysts surveyed by Thomson
Reuters had expected the company to earn a penny a share on $19.9
million in sales.
Gains also came from Palm Inc. (PALM), Yahoo Inc. (YHOO),
Research In Motion Ltd. (RIMM) and online video rental company
Netflix Inc. (NFLX).
Earnings reports after the market close are expected from
security software company McAfee Inc. (MFE) and digital-media
company RealNetworks Inc. (RNWK).