Bright day for tech investors

GAINS in the chip and chip equipment sector following a brokerage upgrade of Applied Materials, among others, and a recovery in software leader Microsoft gave US tech investors a reason to cheer at midday yesterday.

Around 11:35am ET, the Nasdaq composite added 20.02 to 1,260.10. The Dow Jones industrial average straddled the break-even point, gaining 24.09 to 8,210.40. The Standard & Poor's 500 index rose 5.23 to 843.91. "The market took in some unbelievably significant bad news this week and is comparatively holding in, which is certainly encouraging," said Harvey Eisen, chairman of Bedford Oak Advisors. "I think by any measure we are at a major bottom, but bottoms don't happen overnight. Stocks can hit a bottom and then trade sideways, go up, and down, as they adjust. But I'd be stunned if we traded more than 10% lower."

Market breadth was positive. On the New York Stock Exchange, advancers beat decliners by more than 5 to 4 as 696 million shares traded. On the Nasdaq, winners edged losers as 715 million shares changed hands.