Stocks Rise After Greenspan Testimony

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Stocks rebounded Thursday, helped along by a positive view of the economy from Federal Reserve Chairman Alan Greenspan and anticipation of good results from Intel Corp.’s business update.


The Dow Jones Industrial Average rose 26.16 points, or 0.3 percent, to settle at 10,503.02. The Standard & Poor’s 500 Index was up 6.26 points, or 0.5 percent, to finish at 1,200.93. The Nasdaq Composite Index edged up 16.73 points, or 0.8 percent, to close at 2,076.91.


Greenspan said on Thursday that with the U.S. economy on a “reasonably firm footing” and inflation under control, policy-makers should be able to raise interest rates at a gradual pace.


And Intel boosted its second-quarter revenue forecast on better-than-expected demand for its notebook computer chips, a sign the semiconductor industry is gaining strength after a downturn last year. Intel expects sales to be between $9.1 billion and $9.3 billion for the period ending July 2, at the upper end of the $8.6 billion to $9.2 billion range it forecast in April.


Among local companies, shares of Tekelec gained 10.1 percent to $15.96 after the Calabasas-based network signaling products firm’s stock received upgrades from two equity analysts: an upgrade to “buy” from “market perform” by analyst Richard A. Church at CE Unterberg Towbin and a raise to “buy” from “neutral” by analyst Lawrence M. Harris at Oppenheimer & Co.


Global ePoint rose 9.4 percent to $2.80 after the City of Industry-based security technologies company said that Astrophysics, a firm it recently entered into a non-binding letter of intent to acquire, received purchase orders valued at $2.1 million for 75 baggage x-ray inspection machines to be used in Saudi Arabia, the Philippines and Australia.


And Activision Inc. climbed 5 percent to $16.93 after the Santa Monica-based video game publisher announced an agreement with Harrah’s Entertainment Inc. to create and publish games based on the casino owner’s World Series of Poker Tournament. Financial details of the deal were not disclosed.


On the down side, UTi Worldwide Inc. fell 7.3 percent to $67.25 after the Rancho Dominguez-based freight-management services company said it had first-quarter revenues of $630.2 million, far less than the $653.4 million average estimate of analysts.

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