Tech jumps on Dell optimism; broader market flat
NEW YORK (Reuters) - U.S. technology shares rose on Friday as strong results from computer maker Dell Inc (DELL.O) signaled that business and consumer spending was holding up, driving the Nasdaq to end the month up 4.6 percent.
Rising oil prices, however, spurred uneasiness, limiting Wall Street's gains, with the S&P 500 .SPX rising only slightly and the Dow Jones industrial average .DJI falling slightly.
Since oil prices hit a record above $135 barrel last week, investors remain concerned about the effect of soaring fuel costs on inflation and on consumer spending, a key driver of economic growth.
In addition, data on Friday showed that consumer confidence fell to a 28-year low in May.
Still, Dell shares jumped more than 5 percent, putting the stock among the Nasdaq composite index's top boosters, along with chip designer Marvell Technology Group Ltd (MRVL.O), up more than 23 percent, thanks to stronger-than-expected earnings.
The semiconductor index .SOXX, up 2.1 percent, notched its second straight monthly advance, capping its longest monthly winning streak since October 2006.
"The strength of Dell's numbers was a pleasant surprise," said Georges Yared, founder and chief investment officer at Yared Investment Research in Wayzata, Minnesota.
"What this demonstrates is that technology spending is very strong globally. It may not be as strong domestically, but U.S. weakness is being offset by global demand. So tech is probably positioned now for a very good second quarter."
The Dow Jones industrial average .DJI ended down 7.90 points, or 0.06 percent, at 12,638.32. The Standard & Poor's 500 Index .SPX finished up 2.12 points, or 0.15 percent, at 1,400.38. The Nasdaq Composite Index .IXIC closed up 14.34 points, or 0.57 percent, at 2,522.66.
For the week, the Dow ended up 1.3 percent, while the Nasdaq climbed 3.2 percent and the S&P 500 gained 1.8 percent.
The Nasdaq's 4.6 percent rise for the month of May marked its third straight monthly advance and was its second-strongest month this year. The Dow ended the month down 1.4 percent, while the S&P 500 rose 1.1 percent, registering its second straight monthly climb.
TECH LEADERSHIP
The strength in technology came a week after the tech sector overtook financials as a leading constituent of the S&P 500.
Dell shares finished at $23.06 on Nasdaq, while Marvell shares rose to $17.36. Contributing most to the Nasdaq's rise were shares of iPod and iPhone maker Apple Inc (AAPL.O), which closed up 1.1 percent at $188.75.
Shares of Cisco Systems Inc (CSCO.O), whose routers and other networking gear form a backbone of corporate networks, were the top tech contributor to the S&P 500's rise, up 2 percent at $26.72 on Nasdaq. Continued...
