High-Tech Revival Fuels Stock Rally

The decisive rebound in technology stocks continued Tuesday, steering the broad market ever higher in its record-setting march.

The Dow Jones industrial average gained 52.02 points to close at 5,459.61, the ninth new record in just 12 sessions for the widely-watched barometer of blue-chip companies.

Advancing issues outnumbered decliners by about 13 to 9 on the New York Stock Exchange, where volume totaled a hefty 465.92 million shares as of 4 p.m., well above Monday’s 377.73 million.

“Many high-tech stocks are up 20 to 30 percent in the last three weeks. You’re beginning to get a buying orgy,” said Alfred E. Goldman, vice president at A.G. Edwards & Sons Inc. in St. Louis. “High-techs were severely sold out, creating attractive buying opportunities. Some of them have superior earnings prospects compared with the domestic economy.”

Stocks also received “encouragement from a successful (Treasury) bond auction,” said Michael Metz, market analyst for Oppenheimer & Co.

Some of the stocks that moved substantially Tuesday:

NYSE

Micron Technology, up 4-1/4 to 41-7/8.

Allen Noble, an early investor, resigned from the board Monday, about 10 days after the Idaho-based computer chip company rehired the chief executive he had forced out. Micron chairman and CEO Steve Appleton resigned Jan. 18, but was rehired Jan. 26 after several other executives threatened to leave.

Time Warner, up 2 to 43-1/2.

The media and entertainment conglomerate reported that its profit nearly tripled in the fourth quarter to $33 million as all five of its core businesses posted record results. But Time Warner’s earnings per share fell to 1 cent, down from 2 cents a year earlier, because its preferred dividend requirement increased to $28 million from $4 million a year ago.

NASDAQ

Broderbund Software, down 7-1/8 to 46.

The company said weak demand for some software will keep second-quarter results short of expectations, and an analyst at Robertson Stephens & Co. said core Broderbund products such as Print Shop and Carmen Sandiego are suffering.

AMEX

Turner Broadcasting System, Class B shares, up 1-1/8 to 28-1/8

TBS said its fourth-quarter profits slipped to $19 million, or 7 cents a share, down from $26 million, or 9 cents per share, a year earlier.