US STOCKS-Nasdaq up as tech shares rebound; concerns linger

* Tech shares advance after selloff; Intel, Cisco gain

* Homebuilders index misses forecast

* Nasdaq up 0.5 pct; Dow, S&P flat

* For up-to-the-minute market news see [STXNEWS/US]
(Updates to late afternoon; changes byline)

By Angela Moon

NEW YORK, Aug 16 (BestGrowthStock) – The Nasdaq advanced on Monday
as investors bought beaten-down technology stocks after a
four-day selloff, but concerns about the economy after weak
data kept investors wary.

The Standard & Poor’s 500 index and the Dow industrials
fell modestly.

Cisco Systems Inc (CSCO.O: ), the maker of Internet network
equipment, was the most heavily traded Nasdaq stock, gaining
2.9 percent to $21.98, Last week it fell on a disappointing
revenue forecast.

Intel Corp (INTC.O: ) also rose 1.7 percent to $19.46.

“Technology companies got pounded last week on fear that we
are going backward in terms of growth,” said Marc Pado, U.S.
market strategist at Cantor Fitzgerald and Co in San
Francisco.

“But people are starting to think that we may have
over-played the panic a bit, which is helping the Nasdaq.”

Technology stocks are usually considered the most
growth-oriented. The Nasdaq recorded a 5 percent weekly
decline, compared to a 3.8 percent decline on the S&P 500
index.

The Dow Jones industrial average (.DJI: ) was down 9.69
points, or 0.09 percent, at 10,293.46. The Standard & Poor’s
500 Index (.SPX: ) was down 0.60 point, or 0.06 percent, at
1,078.65. The Nasdaq Composite Index (.IXIC: ) was up 8.13
points, or 0.37 percent, at 2,181.61.

The PHLX semiconductor index (.SOX: ) advanced 0.5 percent,
while its relative strength index hit its lowest point since
November 2008 on Friday. The RSI, which determines whether
stocks are oversold or overbought, fell to 31.4, right above
the oversold indicator at 30, indicating a security or index
was relatively cheap.

The index also traded below its lower Bollinger band on
Friday, pointing again to an oversold condition. The Bollinger
is a technical measure used by traders to show the highs or
lows of a price, relative to previous trades.

The market was struggling to rebound from its worst
performance in six weeks. But the prospect wasn’t bright as a
data earlier in the day showed housing and regional
manufacturing sectors remained weak. For details, see
[ID:nN16205304]

“Trading volume remains anemic as traders and portfolio
managers found little reason to get excited enough to make a
decision,” said Scott Fullman, director of derivative
investment strategy at WJB Capital Group.

U.S. homebuilder sentiment unexpectedly fell for a third
straight month in August to its lowest level since March 2009,
according to an industry survey.

Lowe’s Cos Inc (LOW.N: ) edged up 1.5 percent to $19.88 after
the home improvement chain said it expects same-store sales to
rise about 2 percent for the fiscal year. [ID:nN16250437]

But education companies tumbled on concerns federal
regulators will impose tighter controls on student loans.
Strayer Education Inc (STRA.O: ) plummeted 17.3 percent to
$165.46 and Capella Education Co (CPLA.O: ) slumped 12.4 percent
to $61.50. [ID:nN13232515] and [ID:nSGE67F0GA].

A gauge of manufacturing in New York state was up in
August, the New York Fed said, but new orders component index
fell below zero for the first time since June 2009, an early
sign of a slowdown.

(Reporting by Angela Moon, Editing by Kenneth Barry)

US STOCKS-Nasdaq up as tech shares rebound; concerns linger