By Rex Crum
Tech stocks started August on a strong note Monday, flexing
their muscles as most of the sector advanced and semiconductor
sales showed growth in the second quarter.
The sector also rose after Federal Reserve Chairman Ben Bernanke
said consumer spending would likely sustain a 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 said 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 trade group, said that
chip-industry growth rates reflect strong demand from end markets
but added that those rates would moderate in the coming months.
Among chip stocks, LSI Corp. (LSI) rose 25 cents, or more than
6%, to $4.28 a share; Micron Technology Inc. shares (MU) added 37
cents, or 5%, to close at $7.65, and Intel Corp. (INTC) tacked on
55 cents, or 2.7%, to end the day at $21.15.
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 41 points, or
nearly 2%, to close at 2,295, while the Philadelphia Semiconductor
Index (SOX) rose 1.8% and the Morgan Stanley High Tech 35 Index
(MSH) closed with a gain of 2%.
Decliners were paced by Research In Motion Ltd. (RIMM), which
came back from its session lows but still gave up 55 cents a share
to close at $56.98.
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 that RIM would host an event
Tuesday in New York 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.