How Tech's Big Guns May Ambush the Rally

Like the other major U.S. stock indices, the technology-heavy Nasdaq Composite Index has been on a tear of late. Unlike the Dow Jones Industrial Average and S&P 500, which both reached new all-time highs Thursday, the Nasdaq remains far from the record level it reached in the go-go days of early 2000. Still, it closed Thursday at 3,578, it best level since September 2000. At the same time, the outlook for second-quarter earnings for the technology sector is dire. So why is the industry doing so well in the market?