Chips Prop Up Stocks

Written By
Paul Shread
Paul Shread
Published: Oct 12, 2006
Updated: Jul 16, 2021
1 minute read


Solid gains in the chip sector helped save the stock market from a steep decline on Wednesday.

Stocks ended the day modestly lower on earnings and inflation worries, along with the crash of a small airplane in New York City.

But a gain of more than 1% in the chip sectorhelped limit losses.

Rambuswas a big winner, gaining nearly 11% on a licensing deal with Toshiba.

AMDgained 5% on a ThinkEquity upgrade.

Lam Researchcontinued the good news after the bell, edging higher after blowing past estimates, and the company’s guidance also appeared solid. But late news of a patent lawsuit filed against Intelby Transmetaseemed to weigh on the sector in after-hours trading.


Online brokers were big movers on news that Bank of Americawill offer free online trading. Ameritradelost 12%, and E*Tradeand Schwabalso fell.

Ericssonand Sonygained on solid results from their joint mobile phone venture.

Audiovoxand IDTfell on their results.

Investors had mixed reactions to news that stock option probes had claimed top officials at CNETand McAfee.

The Nasdaq slid 7 to 2308, the S&P 500 lost 3 to 1349, and the Dow fell 15 to 11,852. Volume rose to 2.59 billion shares on the NYSE, and 2.06 billion on the Nasdaq. Decliners led 19-13 on the NYSE, and 17-12 on the Nasdaq. Downside volume was 55% on the NYSE, and 58% on the Nasdaq. New highs-new lows were 155-18 on the NYSE, and 138-45 on the Nasdaq.








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