Wall Street Technology shares close higher on hopes worst news over

SAN FRANCISCO (AFX) - Technology shares closed sharply higher after robust earnings reports from IBM and Apple raised hopes that the worst of the earnings news for the sector may now be in the past, and that sector valuations will now stabilise, dealers said.	    The Nasdaq composite closed up 102.59 points, or 4.93 pct, at 2,182.03. Volume came in at 2.75 bln shares, with 2,407 issues closing higher, 1,522 declining, and 360 remaining unchanged.	    The Nasdaq 100 rose 122.50 points to 1,953.29 and the Philadelphia semiconductor index (SOX) added 44.22 to 685.16.	    Elsewhere, the DJIA gained 77.75 points to 10,693.58, with the S&P 500 up 15.52 to 1,253.68.	    Better-than-forecast earnings from the Apple and IBM served to cement a more postive sentiment generated earlier this week by Intel's prediction that the chip market is beginning to stabilise. 	    While none of the technology companies which reported this week called for an immediate rebound in earnings, comments made by executives have at least given investors confidence that business will improve in the second half.  	    "I don't think the second quarter is going to be much rosier than the first, but the conversations about second half are much better, and that is what you are starting to see priced into the market," said Jefferies & Co's Art Hogan.	    "People are pricing some grwoth into the fourth quarter of this year and the first quarter of next year." 	    IBM rallied 8.20 usd, or 7.70 pct, to 114.70 after yesterday reporting robust first quarter results, which drew positive comment from analysts. Among analyst calls, Goldman Sachs added the stock to its 'recommended list' with a price target of 145.0 usd.	    Apple, which smashed the second-quarter consensus earnings estimate by 11 cents, rose 2.93, or 12.93, to 25.72. Analysts were generally positive on the company's second quarter, although they expect the company to face continued challenges ahead amid the ongoing economic uncertainty.	    Amongst other companies that reported earnings yesterday, AMD added 1.16 to 29.01 after hitting the first-quarter consensus. Influential Salomon Smith Barney analyst Jonathan Joseph upgraded the stock to 'buy' from 'outperform'.	    Elsewhere in the chip sector, Lehman Brothers' Dan Niles said the recent rally in semiconductor stocks is likely to ease soon, with a 30 pct risk that the SOX will trade below the year's low of 463. 	    The analyst said that 2001 is likely to be the worst year on record for semiconductor revenue growth -- which he sees contracting by up to 20 pct -- as demand weakness spreads to Europe, Asia Pacific and Japan.	    Intel edged 1.21 usd higher to 32.49, Motorola added 0.89 usd to 16.09 and Micron Technology rose 0.65 to 47.95.	    Oracle jumped over 14 pct after Morgan Stanley upgraded the stock to 'outperform' from 'neutral'. The shares traded 2.39 usd higher at 20.31.	    Microsoft gained 2.59 usd to 68.02 ahead of its third-quarter earnings report expected after market close.	    Sun gained 2.13, or 11.5 pct, to 20.71. The company reported third-quarter EPS of 8 cents - a cents ahead of expectations.	    In the internet sector, EBay gained 4.24 to 49.99 on reports the online auctioneer is about to expand its fixed-price merchandise by introducing four new products lines to its Half.com service, according to a report in the San Jose Mercury News.	    Citing an unnamed source inside the company, the report said eBay will soon add computers, electronics, sports good and trading cards to Half.com's current offerings. 

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