RTTNews - With traders reacting to some positive news out of the tech sector, stocks moved higher at the start of trading on Friday. The major averages all moved to the upside, with the tech-heavy Nasdaq showing a particularly strong upward move.
Semiconductor stocks have helped to lead the way higher after chip giant Intel (INTC) raised its third quarter revenue guidance, citing stronger than expected demand for microprocessors and chipsets. The company also raised its gross margin expectations.
Following the release of better than expected quarterly results from Dell (DELL), computer hardware stocks are also seeing early strength. Outside the tech sector, gold, brokerage, and oil service stocks are also posting notable gains in early trading.
On the economic front, the Commerce Department released a report showing that personal income was nearly unchanged in July, although the report also showed a modest increase in personal spending that came in line with economist estimates.
The report showed that personal income edged up by less than 0.1 percent in July following a revised decrease of 1.1 percent in June. Economists had expected income to increase by 0.1 percent compared to the 1.3 percent drop originally reported for the previous month.
At the same time, the Commerce Department said that personal spending rose 0.2 percent in July compared to an upwardly revised 0.6 percent increase in the previous month. The modest increase came in line with economist estimates.
With income unchanged and spending rising, personal saving as a percentage of disposable personal income fell to 4.2 percent in July compared with 4.5 percent in June.
The major averages have seen some further upside in the past few minutes, rising to new highs for the young session. The Dow is currently up 38.39 at 9,619.02, the Nasdaq is up 29.18 at 2,056.91 and the S&P 500 is up 6.49 at 1,037.47.
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