Strong guidance from Nokia
sent tech stocks higher on Thursday, and the chip sector soared 5% despite warnings from Texas Instruments
, National Semi
Nokia surged 8% after saying it expects third-quarter earnings of 14-16 cents a share, above 11-cent analyst estimates. Revenues of $8.28-$8.4 billion would exceed $8.04 billion forecasts. The company cited “strong volume growth” in the global device market, but some analysts viewed the good news as more of a company-specific rebound from Nokia’s recent market-share losses.
Investors snapped up shares of chip stocks after warnings from Texas Instruments, KLA-Tencor and National Semi weren’t as bad as feared. TXN and NSM gained more than 10% each, and KLAC rose 4%. Chip stocks have slumped 35% this year, hit by an inventory correction and a broader economic slowdown.
Telecom stocks got a boost after Corning
reaffirmed guidance. Corning surged 9%, and shares of JDS Uniphase
Blue chips ended the day lower on rising oil and import prices, although an unexpected drop in weekly jobless claims provided support.
The Nasdaq gained 19 to 1869, the S&P 500 rose 2 to 1118, and the Dow declined 24 to 10,289. Volume rose to 1.37 billion shares on the NYSE, and 1.67 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 19-10 on the Nasdaq. Upside volume was 62% on the NYSE, and 81% on the Nasdaq. New highs-new lows were 142-10 on the NYSE, and 83-37 on the Nasdaq.
After the close, PeopleSoft
surged on a court ruling that Oracle
can proceed with its takeover attempt.
During the day, Volterra
surged on earnings news.
soared 23% on news that it is in talks to be acquired.
fell 8% after the company said it plans to lay off most of its employees after exploring strategic alternatives.