A Mixed Day for Chips

Tuesday was a mixed day for the chip sector.

AMD shares got a lift from an upgrade and bullish comments, helping to prop up tech stocks during the day, but National Semi fell in late trading after the company lowered guidance for its August quarter.

AMD shares jumped 6% after Bear Stearns said its sees price pressures and inventory levels improving at the company. AMD also benefited from bullish comments from a company official on its server business.

NSM said it expects quarterly sales of about $538 million, $20 million below Wall Street estimates. NSM, which slipped 2% in late trading, attributed the shortfall to weaker than expected wireless handset shipments and slow summer seasonality. The company will report full results Sept. 7.

Gateway was another mover, climbing 12% after investors took a 10% stake in the company.

The broader market was mixed after two Federal Reserve officials made hawkish comments on inflation, taking the wind out of an early rally.

The Nasdaq rose 2 to 2150, the S&P 500 added 1 to 1298, and the Dow slipped 5 to 11,340. Volume rose to 1.98 billion shares on the NYSE, and 1.62 billion on the Nasdaq. Advancers led 19-13 on the NYSE, and 16-12 on the Nasdaq. Upside volume was 57% on the NYSE, and 62% on the Nasdaq. New highs-new lows were 124-39 on the NYSE, and 65-79 on the Nasdaq.

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