NEW YORK (CNN/Money) -
Technology stocks inched up Thursday, continuing a modest rebound after a difficult summer and early September.
The tech-dominated Nasdaq Composite index climbed 7.56 points, or 0.4 percent, to close at 1,904.08. The Philadelphia Semiconductor index gained 0.67 points, or 0.2 percent, to close at 381.45.
Nortel Networks Corp. warned Thursday that third-quarter sales will fall below its second quarter and that full-year 2004 revenue at North America's largest telecom equipment maker will lag behind the overall sector.
The company, which is preparing to restate faulty financial results stretching back from 2003 to 2001, did not explain why it saw weaker results and may not until it issues full results for the first half of 2004 and restated results for 2003.
Shares in Nortel (NT: down $0.30 to $3.50, Research, Estimates) tumbled 7.9 percent on the Nasdaq.
Amazon.com (AMZN: up $0.36 to $42.57, Research, Estimates) added 3 percent, one day after debuting the new version of its Web search service -- A9.
Electronic Data Systems Corp. said Thursday the bankruptcy of US Airways Group Inc. could sharply reduce its third-quarter earnings by up to 3 cents per share, because of a long-term information technology contract between the companies.
As of Sept. 12, when US Airways filed for bankruptcy protection, EDS had about $27 million in receivables and accrued work in progress associated with the contract, EDS said in a filing with the U.S. Securities and Exchange Commission.
EDS said it has not decided on the amount of reserves it will establish for the US Airways receivables, but the company said it expects to reserve for all or a substantial portion of the amount US Airways owes the company, which would affect third-quarter earnings.
Nonetheless, EDS (EDS: up $0.27 to $20.10, Research, Estimates) stock closed up 1.4 percent.
And shares in stun gun maker Taser International Inc. (TASR: down $3.21 to $39.88, Research, Estimates) fell 7.5 percent on profit taking following Wednesday's jump of almost 22 percent after the company that said it was selling its product online and that some police officers in the U.K. had gained approval to carry the weapon.
Among the tech bellwethers, Cisco (CSCO: up $0.04 to $19.60, Research, Estimates), Microsoft (MSFT: up $0.07 to $27.26, Research, Estimates), Google (GOOG: up $1.97 to $113.97, Research, Estimates) and Dell (DELL: Research, Estimates) closed higher while Oracle (ORCL: down $0.09 to $11.22, Research, Estimates),Intel (INTC: down $0.31 to $20.11, Research, Estimates), Yahoo (YHOO: down $0.11 to $32.79, Research, Estimates), eBay (EBAY: down $1.72 to $92.33, Research, Estimates) andIBM (IBM: down $0.25 to $86.12, Research, Estimates) finished down.
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