Updated from 1:54 p.m. EDT
Technology stocks were flat Monday as positive news from chipmakers
Advanced Micro Devices
failed to rally the sector.
Intel opened sharply higher, after
boosting its third-quarter outlook before the opening bell. The company now expects revenue of $9.4 billion to $9.8 billion, up from its prior forecast of $9.0 billion to $9.6 billion. The consensus estimate from Thomson Financial is revenue of $9.4 billion. Shares reached as high as $26.22 in early trading but closed down 12 cents to $25.35.
Rival Advanced Micro Devices also rose only modestly on the day it was set to release its redesigned Opteron processor. The much-publicized release is expected to boost the company's ability to compete with Intel. Still, the stock closed up only 33 cents, or 2.6%, to $12.94.
also rose after reporting it had
sold its 1 millionth iPhone. The news, which comes after a week in which the stock shed 4.8% after slashing the price of the device and then apologizing to customers who had just bought one, boosted the stock $4.94, or 3.8%, to close at $136.71.
Intel and Apple are components of the Nasdaq 100, which was almost 2 points higher at about 1960. The index was weighed by two stocks that were falling, despite no major news:
Millicom International Cellular
, which closed down $6.77, or 8.5%, to $72.99, and IT consultant
Cognizant Technology Solutions
, down $3.32, or 4.7%, to close at $67.75.
continued its recent volatile run on heavy trading, also despite reporting major news. The company, which is building a wireless broadband network, fell 13% on trading more than twice its three-month average daily volume. The stock closed down $3.44 to $23.03.
Meanwhile, shares of chipmaker
rose earlier in the day but closed down 13 cents, or 3.3%, to $3.78, day before it is expected to report its fiscal second-quarter earnings.