TECH STOCKS: Tech Stocks Try To Find Upward Momentum Early

By Rex Crum

Tech stocks began to shake off early doldrums as trading progressed Thursday, as many sector leaders rose along with gains in the broader market, due in part to reaction to the latest report on first-time jobless claims.

Among leading tech stocks, gains came from Apple Inc. (AAPL), Cisco Systems Inc. (CSCO), IBM Corp. (IBM) and Hewlett-Packard Co. (HPQ).

The major tech-related market gauges showed some signs of life. The Nasdaq Composite Index (RIXF) edged just above its breakeven point to 2,148, while the Philadelphia Semiconductor Index (SOX) rose 1% and the Morgan Stanley High Tech 35 Index (MSH) registered a small gain.

Much of the early sector, and broad market performance, was being tied to reaction to the better-than-expected data on first-time U.S. jobless claims.

One of the best performers early was Activision Blizzard Inc. (ATVI) up 61 cents a share, or 6%, at $10.69 after the videogame publisher's upbeat fourth-quarter results late Wednesday. Activision said its performance was boosted by strong sales of its "Call of Duty: Modern Warfare 2" game.

Another videogame company, Glu Mobile Inc. (GLUU), didn't fare as well as Activision. Glu Mobile shares shed 22 cents, or 17.5%, to $1.03 after the publisher of videogame for mobile devices reported a fourth-quarter loss of $6.9 million, or 23 cents share, on revenue of $19.1 million. While Glu Mobile narrowed its loss from a year ago, analysts surveyed by Thomson Reuters had expected the company to earn a penny a share on $19.9 million in sales.

Small gains also came from Palm Inc. (PALM), Yahoo Inc. (YHOO), Research In Motion Ltd. (RIMM) and online video rental company Netflix Inc. (NFLX).

Earnings reports after the market close are expected from security software company McAfee Inc. (MFE) and digital-media company RealNetworks Inc. (RNWK).