Chip stocks posted strong gains Wednesday despite a warning from Applied Materials.
The reason? Comments from CIBC that rising bookings at the chip equipment giant mean that better results lie ahead. CIBC said AMAT could gain 50% by year-end.
Applied Materials gained 3% on the comments, and the SOX, the semiconductor index, gained 2%.
The broader market slipped despite better than expected retail sales.
The Nasdaq slipped half a point to 1686, the S&P 500 declined 6 to 984, and the Dow lost 38 to 9271. Volume rose to 1.2 billion shares on the NYSE, and 1.45 billion on the Nasdaq. Decliners led 18-14 on the NYSE, but advancers led 16-15 on the Nasdaq. Upside volume was 44% on the NYSE, and 52% on the Nasdaq. New highs-new lows were 159-28 on the NYSE, and 144-11 on the Nasdaq.
After the close, Brocadematched estimates.
During the day, Computer Sciencesfell 7% on a Goldman Sachs valuation downgrade after reporting in-line results. Aether Systemsgained 5% and eSpeedsurged 11% after beating estimates.
Dell, off 1.4%, reports results Thursday.
ADC Telecomfell 4% after losing its CEO to MCI.
PeopleSoftfell 2% after making more claims in its attempt to avert an Oracletakeover.
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