Broadcombecame the latest chip company to rally despite saying it will miss Wall Street estimates.
Shares of Broadcomsurged 9% Monday after the company said it expects third-quarter revenues to come in flat or up slightly from the second quarter’s $641 million, which would be below analysts’ forecasts of $676 million and the company’s own guidance of $673-680 million.
The communications chip maker said it was affected by the industry-wide inventory glut, but the company sparked a third straight chip stock rally when it said it expects the chip inventory correction to be short-lived.
The broader market was flat as oil and natural gas prices shot up as Hurricane Ivan approached the Gulf of Mexico.
The Nasdaq rose 16 to 1910, the S&P 500 rose 1 to 1125, and the Dow added 1 to 10,314. Volume rose to 1.3 billion shares on the NYSE, and 1.76 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 18-11 on the Nasdaq. Upside volume was 63% on the NYSE, and 77% on the Nasdaq. New highs-new lows were 179-14 on the NYSE, and 138-29 on the Nasdaq.
After the close, LSI Logicwarned.
During the day, Oracleedged higher ahead of its earnings report Tuesday after the close. Analysts expect the company to report earnings of 9 cents a share, up a penny from the year-ago quarter, on sales of $2.23 billion. As for forward guidance, analysts are expecting 13-cent earnings and $2.66 billion in revenues for the November quarter.
Gatewaylost 3% on a Wall Street Journal report that the company may exit the consumer electronics business.
Digitalnetsoared 26% on news that it will be acquired by BAE Systems.
Lucentclimbed 5% on hopes for a contract win from Cingular.
Salesforce.comrose 7% on a deal with GM.
Microstrategy, Mercury Interactiveand Investment Techbenefited from upgrades.
Applied Signallost 9% on concern about revenue delays.