Telecom, Chip Stocks Weigh In

The last week in August is typically a slow period for earnings reports, but a number of telecom and chip stocks are giving investors updates this week.

Novellus lost 2.5% Wednesday after the chip equipment maker lowered its forecast below what Wall Street analysts were expecting.

Fairchild Semi faired better, rising 6% after the company said it expects to make its quarter. Semtech lost 4% after missing earnings estimates and lowering guidance.

ADC Telecom , meanwhile, tumbled 8% after the company warned that third-quarter earnings will come in below analysts’ estimates. Ciena and JDS Uniphase will report their results Thursday.

The broader market rallied Wednesday after the Bush Administration said it would tap the strategic petroleum reserve to alleviate oil shortages in the wake of Hurricane Katrina. Traders shook off news that Midwestern manufacturing contracted in August.

The Nasdaq surged 22 to 2152, the S&P rose 11 to 1220, and the Dow climbed 68 to 10,481. Volume surged to 2.33 billion shares on the NYSE, and 1.71 billion on the Nasdaq. Advancers led 25-7 on the NYSE, and 21-9 on the Nasdaq. Upside volume was 82% on the NYSE, and 78% on the Nasdaq. New highs-new lows were 204-37 on the NYSE, and 117-41 on the Nasdaq.

Intellisync soared 20% after beating estimates.

CNET rose 5% on an upgrade.

VA Software lost 10% after reporting a quarterly loss.

Creative Technology rose 6% after accusing Apple of a patent breach.