By Rex Crum
Tech stocks started August on a positive note Monday, with most
of the sector advancing and semiconductor sales showing growth in
the second quarter.
The sector also rose after Federal Reserve Chairman Ben Bernanke
said that consumer spending will likely sustain the U.S. economic
recovery, and that state governments will need to take more steps
to prepare for economic slumps in the future.
The Semiconductor Industry Association trade group said that
worldwide chip sales in the second quarter rose to $74.8 billion,
up 7.1% from first-quarter sales of $69.9 billion. Chip sales in
June totaled $24.9 billion, up slightly from the $24.8 billion in
sales recorded in May.
Brian Toohey, president of the SIA, said that the chip-growth
rates reflect strong demand from end markets, but that those rates
will moderate in the coming months.
Among chip stocks, LSI Corp. (LSI), Micron Technology Inc. (MU)
and Intel Corp. (INTC) each saw their shares rise more than 2%.
Gains also came from Seagate Technology (STX), Microsoft Corp.
(MSFT), Google Inc. (GOOG), Apple Inc. (AAPL) and SanDisk Corp.
(SNDK).
The Nasdaq Composite Index (RIXF) rose almost 40 points, or
nearly 2%, to 2,294, while the Philadelphia Semiconductor Index
(SOX) and the Morgan Stanley High Tech 35 Index (MSH) each rose
almost 2%.
Decliners included Research In Motion Ltd. (RIMM), which lost
2.4% to $56.21.
Over the weekend, regulators in Saudi Arabia and the United Arab
Emirates said they would ban telecom companies in those countries
from offering RIM's BlackBerry messaging service. Saudi officials
gave no reason for the ban, but the U.A.E. cited an ongoing dispute
between RIM and U.A.E. officials over the monitoring of data.
Separately, reports surfaced saying RIM would host an event next
week to unveil the first touch-screen BlackBerry device, and that
AT&T Inc. (T) would be the exclusive U.S. carrier for the new
BlackBerry.