TECH STOCKS: Intel, OpenTable Lead Tech Sector Higher

By Dow Jones Business News, 
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By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks closed Friday with broad gains, led by advances from Intel Corp. and online restaurant reservation company OpenTable Inc. while Finisar Corp. shares were bruised following a weaker-than-expected earnings forecast from the optical equipment maker.

The Select Sector Technology SPDR ETF (XLK) rose 0.6% on the day, while the tech-heavy Nasdaq Composite Index (RIXF) climbed 13 points to 4,310 and the Philadelphia Semiconductor Index (SOX) rose 1%.

Intel ( INTC ) rose almost 7% to $29.87 after the world's largest semiconductor company on Thursday raised its second- quarter revenue forecast to a range of $13.4 billion to $14 billion from an earlier estimate of $12.5 billion to $13.5 billion. Intel said that it was seeing greater-than-expected demand for business PCs, and the company now expects to see revenue grow slightly for the entire year. The company had earlier forecast full-year sales to be flat with a year ago.

OpenTable ( OPEN ) shares surged 47% to $103.57 after it agreed to be acquired by online travel agency Priceline.com Inc. ( PCLN ) for $2.6 billion in cash. The deal values OpenTable at $103 a share. Priceline's shares fell 3% on the day.

Other Internet-based stocks rose in the wake of the Priceline-OpenTable deal, with Yelp Inc. (YELP) up almost 14%, Groupon Inc. ( GRPN ) rising nearly 4% and online falsh-deal company Zulily Inc. (ZU) up by 5%.

One of the day's biggest decliners was Finisar Corp. ( FNSR ), which fell almost 22% to $19.71 a share. Late Thursday, the optical-communications equipment maker gave a weaker-than-expected fiscal first-quarter earnings, excluding one-time items, of 30 cents to 34 cents a share. Wall Street analysts had forecast Finisar to earn 41 cents a share.

More tech news from MarketWatch:

Priceline to buy OpenTable for $2.6 billion

Priceline reserves a healthy premium for OpenTable

Intel lifts outlook on business PC demand

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  06-13-141659ET
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This article appears in: Technology , Commodities

Referenced Stocks: FNSR , GRPN , INTC , OPEN , PCLN

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