U.S. tech stocks rise as Texas Instruments helps

NEW YORK, June 9 (Reuters) - U.S. technology stocks advanced on Friday as chip maker Texas Instruments Inc. raised its profit outlook, cheering investors after prolonged worries about higher interest rates and an economic slowdown.

But government data showing import prices rose much higher than forecast in May suggested the Federal Reserve could still raise interest rates further, leaving other major stock indexes flat. For details, see ID:nN08398613.

Shares of Texas Instruments rose 1.4 percent to .15 as the biggest supplier of chips for mobile phones raised its outlook for second-quarter earnings and revenue. ID:nN08445485 "There was a feeble last minute rally yesterday, and what they are doing is testing as to whether it was the start of something, or just a brief respite in the continued correction of the market," said Jim Awad, chairman of Awad Asset Management. "At this point it is too early to tell, it could go either way." The Dow Jones industrial average was down 3.48 points, or 0.03 percent, at 10,935.34. The Standard&Poor's 500 Index was down 0.41 point, or 0.03 percent, at 1,257.52. The Nasdaq Composite Index was up 7.52 points, or 0.35 percent, at 2,152.84.

The Philadelphia Semiconductor Index jumped 1.3 percent as Prudential raised its sector weighting on the semiconductor sector to "favorable." ID:nN093834 The Nasdaq Composite index .IXIC> was nearly 10 percent off its April peak at the market open, which could also bring bargain hunters back into the market, traders said.

Shares of Take-Two Interactive Software Inc., owner of the blockbuster "Grand Theft Auto" video game series, fell 11.6 percent to .75 on the Nasdaq after the company posted a wider loss due to a big charge.

REUTERS VJ ht2000