Wall Street Technology shares close higher on consumer confidence figures

SAN FRANCISCO (AFX) - Prices of technology shares closed higher after better-than-expected consumer confidence figures reignited hopes that the U.S. economy may avoid a full-blown recession, dealers said.	    But analysts remained sceptical over whether the Nasdaq's rally will be sustainable over the short term, especially when corporate profits look set to weaken further.	    The Nasdaq composite ended up 53.74 points at 1,972.23 while the Nasdaq 100 closed up 58.73 at 1,735.63.	    The Philadelphia Semiconductor Index closed up 3.82 at 622.29.	    In the wider market, the DJIA finished 260.01 higher at 9,947.54 while the S&P 500 index closed 29.49 higher at 1,182.18. 	    Shares rallied after data out today showed the Conference Board's consumer confidence index rose to 117.0 in March from a revised 109.2 in February, the index's first gain after five consecutive declines.	    Economists surveyed by AFX News had expected the index to fall to 105.7.	    However, Bill Meehan, a market strategist with Cantor Fitzgerald, said while the consumer confidence figures were undoubtedly positive for the market, they do not provide enough reasons to be bullish on prospects for the tech sector.	    "From the figures today, all one can conclude is that the falls in the stock market are not likely to sap consumer confidence," he said.	    But he maintained that the data does not mask the fact that the tech sector remains in a profit recession.	    "Some investors feel techs are just not worth a look. Earnings are going to get worse this quarter," he said.	    Among the major risers were IBM, up 4.10 to 99.50 and Oracle, up 0.96 to 16.65. Yahoo gained 1-3/8 to 15-9/16. 	    Other shares in focus were Palm Inc, which rose sharply ahead of the release of the handheld computer group's third quarter results, due later today.	    Analysts at Sanford Bernstein said the figures will serve to underline the group's strong growth prospects.	    The broker, whose profit forecasts for the group are 2 cents ahead of the Wall Street consensus of 1 cent a share, said the company's stock is a "significant buying opportunity" at current levels.	    Palm's shares closed up 1-3/16 at 15-5/8.	    In semiconductors, Vitesse Semiconductor was a major faller after it became the latest communication chip company to warn on profits.	    The group yesterday halved its second-quarter earnings guidance to 10-11 cents a share from 21-22 cents previously and lowered its sales forecast for the quarter to 120-125 mln usd from 150-160 mln.	    It blamed the shortfall on "continued weakness in demand and order cancellations".	    Its shares fell over 14 pct to close down 4-7/8 at 29-1/16.    

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