Tech Sector Marks Modest Gains On AAPL Rumor

The tech sector modestly gained yesterday with Apple Inc (NASDAQ: AAPL) rising on speculations that it would soon launch a version of its iPhone for Verizon Wireless (NYSE: VZ)

However, shares of smart phone makers, Palm Inc (NASDAQ: PALM) and Research In Motion (NASDAQ: RIMM) pulled down the market, following a report in the Wall Street Journal. The report concurred that PALM and RIMM will be badly affected if AAPL launches such a handset. However, Shaw Wu, an analyst at Kaufman Bros, continued to be upbeat on RIMM and mentioned in a note, "We maintain our buy rating on RIM shares as we continue to believe the company is well positioned in the smart phone space with its vertical integration and superior push network technology."

With the PALM and RIMM shares dragging the market down, the Nasdaq Composite Index had added roughly 6 points, or 0.3%, to 2,411 by the end of the trading day. Meanwhile, the Philadelphia Semiconductor Index added 0.7% and the Morgan Stanley High Tech 35 Index gained 0.1%.

Some of the other tech stocks that were in the red include Oracle Corp (NASDAQ: ORCL) and Texas Instruments (NYSE: TXN). Stocks that helped the market stay in green are Advanced Micro Devices (NYSE: AMD), Hewlett-Packard Co (NYSE: HPQ) and Cisco Systems (NASDAQ: CSCO).

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