NEW YORK (CNN/Money) -
Technology stocks managed a second day of gains Tuesday, restrained by Fed Chairman Alan Greenspan's comments on interest rates but buoyed by oil prices, which fell to six week lows.
The Nasdaq composite index edged up 2.91 points, or 0.1 percent, to 2,023.53, after hitting an intra-day low of 2,008.30. The Amex Technology Index rose 0.6 percent and the Philadelphia Semiconductor Index rose 0.2 percent.
European Union investigations thrust bellwether tech companies Intel and Microsoft into the spotlight, with the European Commission rekindling a three-year-old investigation into Intel's alleged business practice abuses. A spokesperson for the chipmaking giant said the company would fully cooperate with the probe. Intel (INTC: Research, Estimates) shares gained 0.8 percent.
Software giant Microsoft filed an appeal asking EU courts to overturn the Commission's antitrust ruling against the company that included a record $613 million fine and orders that Microsoft change the way it sells Windows software.
Microsoft (MSFT: Research, Estimates) shares rose 0.6 percent.
News that Microsoft and SAP AG, the world's largest maker of business software, confirmed merger talks sent SAP shares up 1.4 percent on the Nasdaq. The German company says it is not for sale.
Rival business software maker Oracle (ORCL: Research, Estimates) gained 1.5 percent. PeopleSoft, (PSFT: Research, Estimates) which has turned down four offers from Oracle in a hostile takeover bid, saw shares jump 3.1 percent.
Network computing company Cisco Systems (CSCO: Research, Estimates) fell 0.6 percent and computer manufacturer Hewlett-Packard (HPQ: Research, Estimates) added 1.6 percent.
The semiconductor sector eased slightly after the world's largest maker of chips for cell phones, Texas Instruments, (TXN: Research, Estimates) Monday announced a positive revised earnings forecast that did not meet Wall Street expectations.
Texas Instruments (TXN: Research, Estimates) shares lost 0.7 percent after falling in after-hours trading Monday.
Motorola (MOT: Research, Estimates) edged lower 0.2 percent and chip gear maker Applied Materials (AMAT: Research, Estimates) fell 1.6 percent.
Cymer Inc. (CYMI: Research, Estimates), a semiconductor manufacturing equipment supplier, forecast second-quarter revenue of $92.3 million to $94.1 million, missing Wall Street expectations. Shares sank 2.6 percent.
But Advanced Micro Devices (AMD: Research, Estimates) rose 2.4 percent. The semiconductor manufacturer said it is preparing to launch a line of low-end processors that target "everyday" computing on business and consumer hardware.
Research firm Gartner reports that Nokia's global mobile phone market share fell sharply in the first quarter of 2004, down 35 percent year-on-year at 29 percent of the worldwide market.
Nokia (NOK: Research, Estimates) ended the day down 1.3 percent.
Computer networking company Lucent Technologies (LU: Research, Estimates) gained 1.2 percent and rival Nortel Networks (NT: Research, Estimates) fell 1 percent.
Video game publisher Take-Two Interactive Software Inc. also fell sharply after posting a wider quarterly loss, more than double what analysts had expected, and slashing its forecasts for the current quarter and the year. Take-Two shares dropped 5.4 percent.
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