Coming on the heels of the huge (profit) reported at Goldman Sachs, the Intel (announcement) sent a strong signal to investors, who had greeted the week of heavyweight earnings with (caution) after a month of market losses and ambiguous economic indicators.
Shares of Intel rose 7.3 percent, while its rival Advanced Micro Devices gained 8.7 percent on the positive signs for computer demand. Among other technology companies, Alcatel-Lucent rose (13.4) percent.
“In Goldman Sachs and Intel, you’ve got the 600-pound (gorillas) in the room,” said Tim Smalls, head of United States stock trading at Execution in Greenwich, Conn.
(Strong) performances from the sterling names during difficult circumstances will not necessarily (reassure) investors, (who) for weeks have been questioning whether the overall economy is improving, Mr. Smalls said. “We have to watch to see if there is this trickle-down effect,” he said. “If the financials coming up this week and next can show some (positive) earnings growth and put a positive (spin) on it, I think that will lessen some of the fears.”