Broadcom became the latest chip company to rally despite saying it will miss Wall Street estimates.
Shares of Broadcom surged 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 Logic warned.
During the day, Oracle edged 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.
Gateway lost 3% on a Wall Street Journal report that the company may exit the consumer electronics business.
Digitalnet soared 26% on news that it will be acquired by BAE Systems.
Lucent climbed 5% on hopes for a contract win from Cingular.
Salesforce.com rose 7% on a deal with GM
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Microstrategy , Mercury Interactive
and Investment Tech
benefited from upgrades.
Applied Signal lost 9% on concern about revenue delays.