[4:30 PM] Apple Stock Watch: Despite Bungie News, Apple Climbs 5 7/16
by Wes George
Stocks rallied Monday after last week's lackluster performance. Fiber optic and semiconductor stocks led the Nasdaq higher, while Intel's gain accounted for about half the rise on the Dow. Apple's stock was among the day's strongest in the PC sector, soaring almost 6.0%.
A very encouraging day for the Nasdaq. Technical analysts see Monday's close above 3958 (the last rally climax on May 1st) as a possible break in resistance indicating the summer rally could continue especially if the Federal Reserve cooperates by not raising interest rates on June 28th. Meanwhile the upcoming earnings season is forecast to be unusually strong.
The cash that mutual fund managers raised in April and May in anticipation of a flood redemptions --which never came -- is now flowing back into the market along with new 401K money that has been piling up on the sidelines for months. Some analysts believe that this alone will be enough to stimulate further rallying through July.
Apple's stock shifted into rally mode after lunch and climbed 5 7/16 to close at 96 5/8 on high volume of 3.4 million shares.
The Nasdaq climbed 129 points (3.35%) to close at 3989, the high of the day, on volume of 1.4 billion shares.
The Dow rallying 108 points (1.04%%) to close at 10557 on volume of 920 million shares.
The S&P 500 climbed 21.48 points (1.47%) to close at 1485.94.
The Mac Observer Stock Watch Virtual Portfolio rose on the rally.
In Apple related businesses: Akamai surged 4 3/4 to 92 3/4. ARM Holdings gained 2 dollars to close at 33 13/16. Adobe traded up 7 1/8 to 127 3/8. Earthlink fell 5/16 to 15 3/4. Motorola dumped a buck to close at 33 1/2. IBM soared to 120 dollars.
Apple's competitors: Hewlett Packard gained 3 15/16 to close at 117 13/16. Gateway was up 3 9/16 to 61 1/8. Shares of Microsoft were up 1 1/8 at 73 11/16.
Intel climbed 10 7/16 to close at 136 1/2 after the company said it will invest $2 billion in a new plant in Ireland. Lehman Brothers analyst Dan Niles said Intel's stock price could reach $175 within 12 months.
eMachines (EEEE) the company that tried to rip-off Apple's iMac design but got sued off the market said that its second quarter earnings will fall short of expectations. Their stock crashed through its 52-week low today. Without their iMac rip-off on the market eMachine's sales are going nowhere, while consumers have associated the company's name with substandard quality.
For full quotes on all the companies mentioned in this article, we have assembled this set of quotes at Yahoo! for your reference. We also have many of these same quotes reported live (20 minute delay) on our home page. For other stories regarding Apple's stock activity, visit our Apple Stock Watch Special Report.
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