Dow Rides Technology Issues Higher

Stocks ended higher on Wednesday, led by technology and transportation issues, but analysts were not impressed.

“I think probably the fact that we didn’t get a better rally than we have gotten after yesterday’s sharp reversal may mean that the market’s correction is not yet over,” said Richard McCabe, Merrill Lynch & Co.’s chief market analyst.

The Dow Jones industrial average rose 14.45 to 4,735.25 after swinging widely throughout the session. Advancing issues led decliners by about 9 to 5 on the New York Stock Exchange, where volume was moderately heavy at 340.72 million shares as of 4 p.m., down from 412.70 million on Tuesday.

Broad market indexes were pushed higher by a strong performance in technology stocks. The Nasdaq composite index surged up 16.09, or 1.6 percent, to 999.56.

Some of the stocks that moved substantially:

NYSE

Union Pacific Resources Group Inc. rose 1 to 22, from an initial public offering price of $21 for 37 million shares.

The Fort Worth, Texas, oil exploration concern went public Tuesday. Nearly 85 percent of its stock will remain in the hands of the railroad, Union Pacific Corp.

Advanced Micro Devices rose 1-7/8 to 26-7/8.

The computer chip maker got a “buy” rating from Duff & Phelps Corp., which said the stock is a “steal” following its decline due to a poor earnings report Tuesday. The earnings of 52 cents a share were less than predicted due to declining revenue from AMD’s 486 computer chip. Duff said the company’s other businesses are strong.

Abbott Labs fell 7/8 to 39-1/4.

The drugmaker’s stock lost 3-1/2 on Tuesday after the company reported third-quarter net earnings of 48 cents per share. That was above last year’s third-quarter results of 43 cents, but slightly below analysts’ expectations.

NASDAQ

Vmark Software Inc. fell 4-1/2 to 7-1/2.

The Westboro, Mass. maker of commercial software development products was downgraded by two brokerages after estimating Tuesday that it would lose money in the third quarter due to disappointing sales and the distractions of consolidating with Easel Corp., a software maker it bought this summer.

AMEX

Audiovox Corp. rose 13/16 to 5-3/16.

The Hauppauge, N.Y. marketer of cellular phones and consumer audio gear said it lost 71 cents in the third quarter due to price cuts in cellular phones and the costs of closing underperforming retail locations.