Investors returned from the Labor Day weekend in a buying mood, and chip stocks led the way higher on an AMD upgrade.
Thomas Weisel analyst Eric Gromberg upped AMD to outperform and raised sales and earnings estimates on growing acceptance of the company’s chips. AMD shares rallied 6% on the news.
The AMD news helped overcome downgrades to Texas Instruments and Novellus
, sending the chip sector
1.7% higher on the day.
After the close, Intel slipped after announcing widely expected job cuts.
Other movers in Tuesday’s trading session included Click Commerce , which soared 25% on a buyout offer from Illinois Tool Works
, while International DisplayWorks
gained 4% on a takeover offer from Flextronics
.
Affiliated Computer climbed 4% on a Goldman Sachs upgrade.
Redback fell 10% on a UBS downgrade.
Apple rose 4.5% on reports that it may soon unveil a cell phone.
The Nasdaq rose 12 to 2205, the S&P 500 gained 2 to 1311, and the Dow rose 5 to 11,469. Volume rose to 2.05 billion shares on the NYSE, and 1.78 billion on the Nasdaq. Advancers led 18-13 on the NYSE, and 18-11 on the Nasdaq. Upside volume was 63% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 177-18 on the NYSE, and 108-36 on the Nasdaq.