Tech Stocks Rise Despite Chip Warnings
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Tech stocks rose Tuesday despite revenue warnings from more chip companies, as investors remained focused on Intel's (NASDAQ: INTC) results due out late Thursday.
KLA-Tencor (NASDAQ: KLAC) was down less than 1% despite lowering its sales outlook about $20 million below the $416 million Thomson Financial consensus estimate. And Nvidia (NASDAQ: NVDA) managed a small gain despite saying it expects revenues to come in far below Wall Street's $806 million forecast.
But the big test for the chip sector will come Thursday, when Intel is scheduled to report its results. The company warned last week that its revenues would come in at $8.2 billion, $500 million lower than expected. The company's first-quarter outlook could be a critical one for the IT sector.
The broader market traded mixed Tuesday on concerns that stimulus and financial rescue efforts might not be enough to stop the steep economic slide. GE (NYSE: GE) fell 5.6% on worries about results, which will be reported Jan. 23. Alcoa (NYSE: AA) was a loser on its results, but JP Morgan (NYSE: JPM) climbed after it moved its earnings announcement up a week to Thursday, raising hope that the company might have good news for investors.
Yahoo (NASDAQ: YHOO) lost 1% on reports of a new CEO, then gained 2% after hours after the company confirmed the news.
Adobe (NASDAQ: ADBE) fell 7% on an FBR downgrade.
Palm (NASDAQ: PALM) resumed its winning ways, up 5%.
Sony (NYSE: SNE) lost 3.7% on reports that the company could report a $1.1 billion loss.
Infosys (NASDAQ: INFY) gained 6% on better than expected results.
The Nasdaq rose 7 to 1545, the S&P 500 added 1 to 871, and the Dow fell 25 to 8448. Volume rose to 5.69 billion shares on the NYSE, and 2.01 billion on the Nasdaq. Advancers led by a 19-18 margin on the NYSE, and 15-12 on the Nasdaq. Upside volume was 56% on the NYSE, and 59% on the Nasdaq. New highs-new lows were 9-67 on the NYSE, and 3-52 on the Nasdaq.