Technology stocks led the charge quietly. While financial firms garner headlines, the tech-heavy Nasdaq composite index has outperformed broader indexes this year and crossed a critical point recently, pulling ahead of its first-of-the-year closing mark of 1,632.21. On Thursday, the Nasdaq closed at 1,670.44 with gains at Google Inc. and Yahoo in the United States. Toshiba gained 4.4 percent in Japan and Samsung Electronics gained 2.8 percent in Seoul.
In contrast to the Nasdaq index, the Dow Jones industrial average is down for the year, closing at 8,125.43 Thursday, more than 900 points below its 2009 starting point. The broader S&P 500 closed at 865.30 Thursday and still has 66 points to gain to tip into the black for the year.
The recession has not ignored the technology sector, as the sector has paid a price shedding thousands of jobs. Google's first quarter report showed revenues down, but profits up with sacrificed jobs making up the difference.
Sony Ericsson said it would cut an additional 2,000 jobs Friday. Best Buy, the country's largest electronics retailer, is reportedly ready to demote 8,000 senior sales personnel and cut 1,000 jobs.
The staggering blow the recession has dealt to newspapers large and small is one of the more visible symbols of technology's here-to-stay prowess.
Revenues are down at newspapers and for Internet advertising. But, it is newspapers that are buckling under while Google managed a profit in the first quarter.
Corporations are also expected to push for new technology systems -- computers and servers -- soon after profits return, putting technology companies in the hesitant bucket-seat called "pent up demand."
In Asia, markets advanced Friday. The Nikkei 225 in Tokyo added 152.32 points to 8,907.58. The Hang Seng index in Hong Kong gained 18.23 points or 0.12 percent. The Singapore Straits Times gained 0.25 percent. The S&P/ASX in Australia gained slightly, up 0.03 percent.
In midday trading, the FTSE 100 in London gained 1.1 percent, while the DAX 30 in Frankfurt gained 1.37 percent. The CAC 40 in Paris was a head 1.47 percent and the broader DJStoxx 600 gained 1.32 percent.
And U.S. markets could be poised for more gains Friday, helped by Citigroup Inc., which said after the close Thursday it made $1.59 billion in profits in the first quarter, the first time it has posted a profit six quarters.
Copyright 2009 by United Press International.
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