Shares of Hewlett-Packard Co. (HPQ.N: Quote, Profile, Research) and Dell Inc. (DELL.O: Quote, Profile, Research), the world’s biggest personal computer makers, rose on Thursday on confidence over increased technology spending after Cisco Systems Inc. (CSCO.O: Quote, Profile, Research) posted better-than-expected results.
Shares of Hewlett-Packard, the largest PC maker, were up 81 cents, or 2.1 percent, at $39.69 in trading on the New York Stock Exchange. Dell, the No. 2 PC maker, were up 88 cents or 3.6 percent to $25.06 on Nasdaq.Shares of Cisco, the world’s largest maker of computer networking equipment, jumped as much as 9.3 percent on Nasdaq and led gains in technology stocks. Cisco was the second-best performer on a Merrill Lynch index of technology stocks and Dell was the fifth-best.
Also contributing to Dell’s and HP’s gains were weaker-than-expected earnings of Lenovo Group Ltd. (0992.HK: Quote, Profile, Research), the world’s No. 3 PC maker.Lenovo blamed pricing competition from rivals seeking market-share gains in its home market of China, where it is the largest personal computer maker. It also faces tough competition from Dell and HP in the United States and Europe, where Lenovo is trying to gain market share.