By Dow Jones Business News, October 16, 2013, 04:10:00 PM EDT
By Benjamin Pimentel, MarketWatch
SAN FRANCISCO (MarketWatch) -- Facebook and Intel led a tech-sector rally on Wednesday amid optimism that the budget
impasse in Washington, D.C., may be coming to an end.
Facebook (FB) rose 3.3% to close at $51.13, while Intel ( INTC ) rose 1.3% to close at $23.70, a day after the chip
maker reported results that beat Wall Street's earnings projections, even as it put out a disappointing forecast.
There were still concerns about Intel's near-term prospects. Canaccord Genuity's Bobby Burleson kept a hold rating on
the stock, telling clients in a note "the consumer PC market has not reached a bottom and is likely to see escalating
cannibalization with the ramp of iPad 5 and competition from low-cost tablets in emerging markets."
On the other hand, Yahoo ( YHOO ) reversed course, sliding nearly 1% to close at $33.09, a day after the company
reported slightly better-than-expected earnings and amid speculation that Alibaba, the Chinese company in which the Web
portal has a sizable stake, is about to go public.
Analysts continued to point to Yahoo's struggling core business.
"Overall, nothing in Yahoo's report significantly changed our view on the company's core business," Macquarie Equities
analyst Ben Schachter told clients in a note. "The user metrics were solid, the revenue growth was not, guidance was
slightly lowered."The Nasdaq Composite Index (RIXF) rose 1.2% to close at 3,839.43.
The Morgan Stanley High Tech 35 Index (MSH) gained 1.2%, while the Philadelphia Semiconductor Index (SOX) gained 1%.
Other Internet stocks posted solid gains, including Google Inc.( GOOG ) , Groupon Inc.(GRPN) , Yelp Inc.(YELP) and
LinkedIn ( LNKD ) , as the broader market also rallied on signs of a possible end to the budget impasse in Washington,
The Dow Jones Industrial Average (DJI) surged nearly 206 points.
The tech sector also got a boost from shares of Veeva Systems (VEEV) , which soared 86% to close at $37.16, as the
cloud-based software company began trading on the New York Stock Exchange. The Pleasanton, Calif.-based company priced
its IPO at $20 a share, above its revised range of $16 to $18. The company, which is geared to the life sciences market,
had initially set a range of $12 to $14.
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