For the second day, technology stocks saved US markets from getting hammered. A handful of old-time companies like 3M and Chevron reported lousy earnings Thursday, dragging the Dow Jones Industrial Average down for most of the day. But tech stalwarts like Dell Computer and Microsoft rose, helping markets eke gains at the end.
The Wired Index rose 3.74 to 385.88, and the Dow Jones Industrial Average gained 13.91 to 8533.14. Earlier in the day, though, the Dow was off as much as 97 points. The Nasdaq advanced 27.87 to 1702.62.
At this point, most big-name companies have reported third-quarter results, and they weren't that bad. Of course, there's no mistaking that US companies are finally suffering from Asia's economic troubles. But the damage wasn't dire, as some investors had expected. On top of that, the interest-rate cuts last week will probably keep the US economy out of a recession, analysts said.
"Essentially the whole market sentiment is beginning to be more and more positive with the cut in interest rates," said Conley Turner, equity analyst at Wall Street Strategies. "More sideline money is coming into the market."
That sideline money appears to be going into technology stocks. Microsoft (MSFT), fresh from its stellar earnings report Tuesday, led gains among the tech pack as its shares rose US$3.56 to $110. The company's executives are so bullish about their prospects in coming months that they told analysts to increase their earnings estimates by a nickel a share -- a supreme act of confidence.
What's good for Microsoft is good for the economy these days. Dell (DELL) rose $1.94 to $58.88, and Cisco Systems (CSCO), gained 81 cents to $58.44. Intel (INTC), the world's biggest chipmaker, rose 31 cents to $87.38.
But elsewhere in corporate America, the news was grim. Minnesota Mining & Manufacturing (that's 3M to you and me) said its third-quarter earnings dropped 9.3 percent on lower sales from abroad. 3M, which makes everything from Post-it notepads to floppy disks, gets half of its revenue from overseas, so continuing economic troubles will probably ding the company's earnings for several more quarters. 3M (MMM), fell $2.81 to $81.44.
Bankers Trust, the seventh-largest US bank, also had disappointing results. It reported a loss of $488 million -- its worse in a decade -- because of bad bets in bonds and Russian securities. Still, Bankers Trust shares (BT) managed to rise 88 cents to $61.
Chevron also suffered. The company said falling crude oil prices dragged its net income down 37 percent while its revenue sank 25 percent. On top of that, Hurricane Georges, which closed oil platforms in the Gulf of Mexico and shut down its huge Pascagoula, Mississippi, refinery, cost it $50 million in lost income. Chevron stock (CHV) dropped $5.75 to $81.50.
At least one company is profiting from all this market turmoil. Reuters, the biggest vendor of financial-data terminals, said its third-quarter revenue surged 10 percent. Traders can buy and sell securities through Reuters money boxes, and it charges for each transaction. So in periods of heavy trading, like all of last summer, Reuters makes a mint. CEO Peter Job also told investors that the company's installed base remains "resilient," even as banks consolidate. Reuters (RTRSY) surged $5.63, or 12 percent, to $53.88.
Procter & Gamble (PG) also gained after the biggest consumer-goods maker said profits rose 7 percent. P&G rose $3.19 to $87.
America Online (AOL) got a boost after the Wall Street Journal reported the world's biggest online service might use Time Warner's (TWX) cable-television system to deliver speedy Internet access to AOLers. America Online rose $6.94 to $113.94.
Internet brethren Yahoo and Excite also rose. Yahoo (YHOO) gained $2.38 to $122.13 while Excite (XCIT) rose $1.06 to $32.56.
Financial columnist David Lazarus is off.
Reuters contributed to this report.
