Stocks rise at opening after Intel increases revenue forecast; Dow up for 9th day

Stocks open higher after Intel boosts forecast

NEW YORK — Stocks are opening higher after Intel raised its revenue guidance for the third quarter.

The world’s largest maker of computer chips says it now expects sales of $8.8 billion to $9.2 billion in the current quarter. It had previously forecast revenue in the range of $8.1 billion to $8.9 billion.

Intel’s upbeat report comes a day after computer maker Dell reported better-than-expected results for its May-July quarter.

Investors have been looking for signs of improving consumer spending to determine the potential timing and size of any economic recovery.

In early trading, the Dow Jones industrial average is up 21 at 9,602. The Standard & Poor’s 500 index is up 6 at 1,036, while the tech-heavy Nasdaq composite index is up 23 at 2,051.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stock futures extended their gains Friday, pointing to a higher open as Intel Corp. raised its revenue guidance for the third quarter.

Futures had been modestly higher throughout the morning before the chipmaker provided the latest sign businesses are starting to recover from the ongoing recession.

Overseas markets rose on strong earnings from consumer goods companies and an increase in European economic confidence.

The world’s largest maker of computer microprocessors said it now expects sales of $8.8 billion to $9.2 billion in the current quarter. It had previously forecast revenue in the range of $8.1 billion to $8.9 billion.

Intel’s upbeat report comes a day after computer maker Dell Inc. reported better-than-expected results for its May-July quarter. While sales continued to fall because of reduced spending by consumers and businesses, Dell said it has seen signs of improvements.

Investors have been looking for signs of improving consumer spending, which accounts for more than two-third of economic activity, to determine the potential timing and size of any economic recovery.

Ahead of the opening bell, Dow Jones industrial average futures rose 65, or 0.7 percent, to 9,632. Standard & Poor’s 500 index futures rose 8.80, or 0.9 percent, to 1,038.10, while tech-heavy Nasdaq 100 index futures jumped 22.50, or 1.4 percent, to 1,661.50.

Investors brushed off a Commerce Department report earlier Friday that said consumer spending rose 0.2 percent in July, which was in line with economists’ expectations.

Growth in spending and consumer confidence has been slowed by rising unemployment and weak income growth. Spending got a boost during the month from an increase in auto sales tied to the popular Cash for Clunkers program.

The latest report said personal income was flat in July. Economists polled by Thomson Reuters expected a 0.2 percent increase. Personal income, which fuels future spending increases, has been hammered during the recession as employers cut payrolls and forced workers to take unpaid days off to hold down wage costs.

“The numbers today seem to be more or less in line with expectations, so we wouldn’t expect to see any rally or sell off on the data,” said Eric Thorne, a senior vice president and investment adviser at Bryn Mawr Trust Wealth Management.

Investors also get a reading on the psyche of the consumer as the University of Michigan releases the final results of its August sentiment survey. When the preliminary August results released two weeks ago were worse than expected, it helped spur a big sell-off in the market.

The report is due out at 9:55 a.m. EDT.

Major indexes edged out gains on Thursday after starting the day lower. The Dow rose for the eighth consecutive day, increasing 37 points, its longest winning streak since April 2007. The market’s five-month rally appears to have lost much of its steam as analysts say most of the improving economic data has already been priced into stocks. But, traders also aren’t ready to completely reverse course and start selling off stocks believing the market is overbought.

Meanwhile, bond prices mostly fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.52 percent from 3.46 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, was flat at 0.14 percent.

The dollar mostly fell against other major currencies, while gold prices rose.

Overseas, Japan’s Nikkei stock average rose 0.6 percent. In afternoon trading, Britain’s FTSE 100 rose 1 percent, Germany’s DAX index gained 1.1 percent, and France’s CAC-40 climbed 1.3 percent.