Technology stocks rose in Tuesday noon trading, as industry titans Intel Corp. (INTC) and International Business Machines Corp. (IBM) lead the way with better than expected quarterly earnings.
Intel shares rose 30 cents by noon, or more than 1.5 percent to $21.18.
On Tuesday, the world's largest chipmaker posted a third-quarter profit of $1.3 billion, or 22 cents per share, on revenue of $8.7 billion, beating Wall Street estimates.
Intel had a better 3Q, but off of an exceptionally easy 2Q comparison, Thomas Weisel analyst Eric Gromberg told clients this morning.
Shares of IBM also surged $3.93, or 4.6 percent, to $90.98 after Big Blue reported late Tuesday that third-quarter profit that rose 47 percent compared to a year ago. The firm earned $1.45 per share, or $2.22 billion on $22.6 billion in revenue.
In our view, said Kathryn Huberty of Morgan Stanley, IBMâ€™s risk/reward is compelling in context of the stable business model, better execution and potential catalysts.
Yahoo Inc. did not fare as well. The internet company reported late Tuesday that third-quarter profit fell 37 percent, as higher advertising sales at its collection of web sites weren't enough to offset stock options costs and higher expenses. Yahoo dropped over 3 percent, hitting a 2-year low at $23.24
The tech-heavy Nasdaq Composite Index rose 11 points to 2,355.