TECH STOCKS: Rackspace, Apple Gain As Tech Stocks Rise

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks were mixed in Tuesday's trading session, with gains from Rackspace Hosting Inc. standing out following the company's upbeat first-quarter earnings results.

Rackspace (RAX), which provides Web-hosting services data centers and businesses using cloud-computing technologies, was up by 12% at $30.84 a share. On Monday, Rackspace reported a profit of $25.4 million, or 18 cents a share, on $421 million in sales, compared with earnings of $27.3 million, or 19 cents a share, on revenue of $362.2 million a year ago. Analysts surveyed by FactSet had forecast Rackspace to earn 12 cents a share on $419.3 million in sales.

DirecTV (DTV) shares rose almost 2%, to $88.71 following reports that AT&T Inc. (T) could finalize a deal to acquire the satellite TV company within two weeks.

EBay Inc. (EBAY) was up by 10 cents a share at $51.43 as the e-commerce giant prepared to hold its annual shareholders meeting Tuesday.

Apple Inc. (AAPL) rose 65 cents a share to $593.53 as investors awaited a possible announcement that the company will acquire Beats Electronics for $3.2 billion in a deal that could bring longtime music executive Jimmy Iovine into Apple's executive ranks.

The tech-heavy Nasdaq Composite Index (RIXF) rose 7 points to 4,151 while the Philadelphia Semiconductor Index (SOX) edged into positive territory.

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