S&P 500 October Winners
Peter Kang, 11.01.04, 6:00 AM ET
NEW YORK - It was the revenge of the nerds in October. The technology sector outperformed all other industries as investors flocked to high-beta issues amid favorable earnings reports. While the tech sector's near-term outlook has brightened, investors are wondering whether the gains will hold or are merely a pullback from lows in a beaten-down sector. The S&P 500 gained 15.62 points, or 1.4%, in October, but had it not been for a remarkable 35-point swing in the last four trading days, the index would have fallen by 1.8%. The late gains may be attributed to a decline in crude oil prices, which fell sharply off record highs. The S&P 500 is up just 1.6% for the year as apprehensive investors eagerly await the outcome of a close U.S. presidential election.
Delta Air Lines (nyse: DAL - news - people ) was the highflier in October, logging a substantial 65% gain. Shares of Delta flew after the company said it reached a tentative agreement with pilots that would save the company approximately $1 billion. The beleaguered airline, which announced last month it would cut 7,000 jobs, is attempting to avoid bankruptcy by restructuring more than $20 billion in debt. The airline had the third-largest decline in the S&P 500 in September.
Apple Computer (nasdaq: AAPL - news - people ) tacked on hefty gains as it lifted 35% in October, and is up 145% for the year. Shares were buoyed by the company's fiscal fourth-quarter earnings report, which showed net income doubled from the year-ago period, to $106 million. Apple raked in profits on robust sales of its iPod with "no signs of slowing down," according to a recent analyst note from Credit Suisse First Boston. The research firm said Apple's next quarter "is shaping up to be one of the best on record owing to a confluence of factors, including strong seasonal demand, exciting product cycles, improved supply and inventory refills all occurring at the same time."
Advanced Micro Devices (nyse: AMD - news - people ) added to its September gains, up 29% for the month, as the semiconductor firm announced a pair of new chips aimed at high-performance users. The unveiling came days after rival Intel (nasdaq: INTC - news - people ) said it halted plans to build a 4-gigahertz Pentium 4 chip.
Shares of Citrix Systems (nasdaq: CTXS - news - people ) logged the second-largest monthly gain in the S&P 500 as the maker of computer security software jumped 37%, aided by strong third-quarter earnings. Software firms Siebel Systems (nasdaq: SEBL - news - people ), Mercury Interactive (nasdaq: MERQ - news - people ) and Veritas Software (nasdaq: VRTS - news - people ) also achieved significant gains in October, but are well off their 52-week highs.
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