In company news, strength in the semiconductor sector helped drive the tech rally. Intel shares were down 0.47% to $25.35 after gaining most of the session. The company raised its third-quarter revenue forecast to between $9.4 and $9.8 billion and said gross margins would be at the high end of its target range; stronger than expected global demand for computing products drove the results. Investors appear to be using technology stocks as a safe haven amid troubles in the credit and mortgage markets.
Another tech stock that performed well on Monday was Apple. Shares in the company were up 3.75% to $136.71 after Apple announced it had sold its one-millionth iPhone a few weeks ahead of schedule. The result reassured investors who had thought last week's price cut on the phone signaled weak demand for the product.
Washington Mutual shares were down 0.8% to $34.74 after it called conditions in the US housing market a "near perfect storm" that may force the company to set aside an additional $500 million dollars for bad loans totaling $1.5 billion dollars it had forecast back in July. If it happens it would be Washington Mutual's fourth increase this year.
And finally, Bear Stearns shares got a respite after the reclusive billionaire Joseph C. Lewis, who made his fortune trading currencies, has taken a 7 per cent stake in the investment bank. Shares were up 2.02% to $107.50. Lewis paid just shy of $860.5 million dollars to become one of its largest shareholders in less than a month. Bear Stearns' shares are down about 35 per cent this year caused by its reliance on the mortgage market and the meltdown in the subprime lending industry.
Turning to the best and worst performers in the Nasdaq Top 100. Topping the short list of winners was Apple. Activision and Dentsply round out the top three.
Meanwhile Millicom International fell by 8.49% to $72.99. Cognizant Technology Solutions and Qualcomm also performed particularly poorly.
