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The technology sector kicked off the third quarter with gains for most companies Wednesday including bellwethers Intel Corp. (INTC), Microsoft Corp. (MSFT) and Oracle Corp. (ORCL).
Shares of Intel rose 2.4% to $16.94, Microsoft gained 1.7% to $24.18 and Oracle was up 1.8% to $21.81.
Intel got a boost from a positive review from Barclays Capital analyst Tim Luke who told clients to expect "solid" second-quarter results from the chip giant when it reports earnings later this month.
"We remain impressed by Intel's crisp execution and maintain a constructive bias at present," Luke wrote. He also offered a mixed view of the broader chip sector, noting that key vendors will likely "report stronger second quarter (against) guidance with inventory modest and solid/broadly seasonal guide reflecting holiday build." But he also echoed lingering concerns about long-term demand, adding, "We consider that visibility on end market sell-thru for holiday season remains uncertain given the weakened macro backdrop and we remain selective."
Investors appeared to embrace a more positive view as chip stocks again outpaced the rest of the tech sector, with the Philadelphia Semiconductor Index gaining 1.5% to 267. Meanwhile, the Nasdaq Composite Index rose 2.1% to 1856, while the Morgan Stanley High-Tech 35 Index gained 1.1% to 456. |
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