Micron Technology Inc. gained, extending a rally that has boosted the Philadelphia Semiconductor Index 41 percent since stocks fell to three-year lows on Sept. 21.
Micron climbed US$0.49 to US$31.66. The maker of personal-computer memory chips has soared 51 percent since Sept. 21.
Investors anticipate chip companies, whose products are used in everything from cell phones to greeting cards, will be among the first to benefit when the economy begins to grow.
Micron is likely to form an alliance in the memory-chip business with Hynix Semiconductor Inc of Korea, which also makes chips for computers.
Atmel Corp gained US$0.34 to US$7.83. The chip company jumped 13 percent yesterday after an analyst at AG Edwards said it is inexpensive.
Other chip companies advanced. Novellus Systems Inc rose US$1.57 to US$41.32, Xilinx Inc gained US$1.43 to US$41 and Altera Corp climbed US$1.18 to US$22.40.
Intel Corp, the largest chipmaker, fell 48 cents to $32.19.
Nokia Oyj rose US$0.44 to US$25.25. Investors are optimistic the maker of cellphone equipment had strong handset sales before Christmas and that an economic rebound will encourage consumers to increase their spending.
Citigroup Inc and JP Morgan Chase & Co led financial shares higher. The two lead lenders to the bankrupt energy trader Enron Corp won a 23-day extension to get commitments for US$1 billion in financing the trader says it needs to stay in business. Citigroup rose US$0.45 to US$51.19 and JP Morgan Chase advanced US$0.23 to US$36.55.
Brokers extended their three-month rally, led by Merrill Lynch & Co. The Amex Securities Broker/Dealer Index has gained 36 percent this quarter, outpacing benchmark indexes. It is down 7 percent this year.
"Brokers move with the market, and we think the market will improve next year," said Richard Sichel, who oversees US$600 million as chief investment officer at Philadelphia Trust Co.
Morgan Stanley Dean Witter & Co jumped US$1.47 to US$56.87.
Yahoo Inc gained US$0.53 to US$18.30. The most-used Internet search service rose for a third day after Merrill Lynch analyst Henry Blodget raised his fourth-quarter revenue estimate to US$175 million from US$168 million.
Chinadotcom Corp surged US$0.48, or 19 percent, to US$3.
Chinese companies trading in the US rose after President George W. Bush approved permanent normal trade relations with China, the same low-tariff trading status most countries enjoy with the US.
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