Markets Rise on Tech Rally

By Nick McMaster,  Newser Staff
Posted Dec 20, 2007 4:14 PM CST
In this photo released by the New York Stock Exchange, the board showing the totals of the day's activity is shown. (AP Photo/NYSE, Mel Nudelman)   (Associated Press)
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(Newser) – Sharply higher earnings and a bullish forecast from software giant Oracle kicked off a market rally this morning, but fears about the financial sector continued as Bear Stearns reported its first-ever (and steeper than expected) loss. Another late rally boosted the tech-rich Nasdaq 39.85 points to 2,640.86; the Dow finished up 38.37 points, at 13,245.64, and the S&P 500 up 7.12 at 2,640.86.

Oracle stock advanced 7% after the company posted a 35% jump in second-quarter fiscal profits, and Oracle CEO Larry Ellison said software sales are holding up despite an overall slump in business spending. Bear Stearns posted its first quarterly loss in 84 years on bad subprime mortgage bets, and FedEx net income dropped 6% due to fuel costs and economic weakness.