By Benjamin Pimentel
The tech sector kicked off the third quarter with modest gains
Wednesday, as bellwethers Intel Corp., Microsoft Corp. and Oracle
Corp. advanced.
The Nasdaq Composite Index (RIXF) rose 0.6% to close at
1,846.
Shares of Intel (INTC) traded up about 3%, while Microsoft
(MSFT) gained 1.1% and Oracle (ORCL) added 1.5%.
Intel got a boost after a positive preview from Barclays Capital
analyst Tim Luke, who told clients to expect "solid" second-quarter
results from the chip giant when it reports earnings later this
month.
"We remain impressed by Intel's crisp execution and maintain a
constructive bias at present," Luke wrote.
He also offered a mixed view of the broader chip sector, noting
that key vendors will likely "report stronger second quarter vs.
guidance with inventory modest and solid/broadly seasonal guide
reflecting holiday build."
But he also echoed lingering concerns about long-term demand,
adding, "We consider that visibility on end market sell-thru for
holiday season remains uncertain given the weakened macro backdrop
and we remain selective."
Investors appeared to embrace a more positive view, however, as
chip stocks again outpaced the rest of the tech sector, with the
Philadelphia Semiconductor Index (SOX) gaining 1.5%. Intel's
arch-rival Advanced Micro Devices (AMD) was up 1%.
Meanwhile, the Morgan Stanley High-Tech 35 Index (MSH) gained
0.6%.
Shares of International Rectifier Corp. (IRF) were up 1.35%
after announcing that it has settled a dispute with Vishay
Intertechnology (VSH) over its 2007 acquisition of IRF's Power
Control Systems. Vishay shares also gained, up about 3%.
Also trading to the upside were shares IBM Corp. (IBM), Cisco
Systems (CSCO) and Apple Inc. (AAPL).
Sitting out the rally, Yahoo Inc. (YHOO), eBay Inc. (EBAY) and
Dell Inc. (DELL) were all in the red.