AMD action helps NYSE technology stock rally
The technology sector got more than its share of attention on the New York equities markets on Tuesday as Advanced Micro Devices announced that it has filed a lawsuit against Intel.
The suit charges that Intel forced clients to buy their chips rather than AMD’s product.
The suit comes after AMD’s complaint of anti-competitive practices by Intel to the European Commission and after a ruling by the Fair Trade Commission in Japan which found that Intel had violated anti-trust laws when it offered rebates to five Japanese companies on condition that they would limit purchases of chips made by AMD.
Two investigations by the US Federal Trade Commission have been closed without finding any wrongdoing.
After news of the lawsuit was released, AMD’s shares rose 6.3 percent to $17.70, and Intel’s stock advanced by 1.8 percent to $26.33.
Overall in New York, the Dow Jones Industrial Average rose 1.1 percent to 10,405.63, the S&P 500 was up 0.9 percent to 1,201.57, and the Nasdaq Composite was up 1.2 percent to 2,069.89.
Factors in the advances included a drop in crude oil prices, news of a 3-year high in the consumer confidence index, and labor market conditions that look to be improving.
Airlines saw their shares gain value on the news that oil prices were declining. Delta Air Lines gained 12.8 percent to $3.97, AMR was up 9.3 percent to $12.3, and Air Tran Holdings rose 6.1 percent to $9.47.
Some energy stocks declined as investors interpreted lower oil prices as a threat to profits. Amerada Hess lost 3.8 percent to $106.26, while Marathon Oil fell 2.9 percent to $53.96.