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TECH STOCKS: Yahoo, RIM Chips Boost Techs

By Benjamin Pimentel

The tech sector edged up early Tuesday, boosted by gains in shares of Yahoo Inc., Research In Motion and chip companies.

Yahoo (YHOO) was up 1.4% in early trading, while Research In Motion (RIMM) rose nearly 3%, helping propel the Nasdaq Composite Index (RIXF) a fraction to 2,158.

Meanwhile, shares of Electronic Arts (ERTS) plunged more than 6% a day after the video-game publisher posted a wider loss.

But the tech sector got a boost from most major players, including Apple Inc. (AAPL), Google Inc. (GOOG) and eBay Inc. (EBAY)

The semiconductor companies also were in the green, with Intel Corp. (INTC), Advanced Micro Devices (AMD) and Texas Instruments (TXN) each up more than 1%, following a couple of upbeat views of the industry's direction.

FBR Capital analyst Craig Berger urged investors to "buy the chip dip," saying in a note that earnings per share "sensitivities suggest little downside to valuation troughs."

Caris & Company's Craig Ellis also wrote that "tech's overall inventory looks relatively benign, through we can't 'see' retail inventory, with prospects for seasonal or modestly better first quarter of 2010 chip maker revenue growth possible."

The Philadelphia Semiconductor Index (SOX) was up 0.7%, while the Morgan Stanley High Tech 35 Index (MSH) gained 0.3%.

  (END) Dow Jones Newswires
  11-10-091008ET
  Copyright (c) 2009 Dow Jones & Company, Inc.