* Texas Instruments' view lifts tech stocks
* 10 banks to repay TARP
* Nasdaq up 1 pct, S&P 500 up 0.4 pct; Dow off 0.02 pct
* For up-to-the-minute market news click []
(Adds context on Dow's performance, latest Nasdaq volume)
By Chuck Mikolajczak
NEW YORK, June 9 (Reuters) - The Nasdaq rose on Tuesday
after an improved outlook from Texas Instruments lifted
technology stocks, but news that 10 big banks will repay TARP
funds failed to stir investor enthusiasm.
Shares of Texas Instruments Inc <TXN.N> jumped 6.3 percent
to $21.02 after the company raised its quarterly earnings and
revenue targets, signaling improving demand in the chip
market. For details, see[]
The PHLX semiconductor index <.SOXX> climbed 4.5 percent.
"The guidance from Texas Instruments basically follows
along with what Intel said mid-quarter that basically that
there is a bottom forming and some first starts of improvement
in the chip cycle," said Fred Dickson, market strategist and
director of retail research at D.A. Davidson & Co in Lake
Oswego, Oregon.
"That implies orders for tech equipment are starting to
show early signs of picking up."
Stocks initially moved higher after the Treasury
Department said 10 big banks will pay back $68 billion
received under the Troubled Asset Relief Program, or TARP, to
the government. But the market quickly fell back on concerns
that the money could be put to better use by making loans to
businesses and consumers, which would boost the economy.
"These banks want to pay back the TARP money almost
immediately. What does that do to their balance sheet and
their loaning capability?" said Carl Birkelbach, chairman and
chief executive of Birkelbach Investment Securities in
Chicago.
"If they were more concerned about the public, they would
keep the cash and start loaning out money."
The Dow Jones industrial average <> dropped 1.43
points, or 0.02 percent, to 8,763.06. The Standard & Poor's
500 Index <.SPX> gained 3.29 points, or 0.35 percent, to
942.43. The Nasdaq Composite Index <> climbed 17.73
points, or 0.96 percent, to 1,860.13.
DOW NEAR BREAK-EVEN FOR YEAR
For the month, the Dow is up 3.1 percent. During Tuesday's
session, the Dow briefly turned positive for the year when it
hit an intraday high at 8,803.26, or nearly 27 points above
its year-end close, before erasing gains to end slightly
lower. For the year, the Dow is down only 0.15 percent.
Energy stocks also moved higher as U.S. crude oil futures
<CLc1> ended above $70 a barrel for the first time in seven
months, on a weaker dollar and a government forecast of higher
demand in 2009.
The PHLX Oil Service Sector index <.OSX> rose 2.2
percent.
An auction of three-year Treasury notes in the early
afternoon was met with solid demand, easing concerns that an
oversupply of government debt could push interest rates still
higher and increase the cost of borrowing to consumers and
businesses.
However, those worries may resurface with the auction of
10-year notes and 30-year bonds later in the week.
General Electric Co <GE.N>, which makes engines for
planes, said it expects orders this year to fall by 50 percent
[], knocking down shares of plane maker Boeing Co
<BA.N> and United Technologies Corp <UTX.N> , also a maker of
plane engines.
Boeing shares fell 0.9 percent to $52.35, while United
Technologies shares slid 1.7 percent to $55.52 and were among
the top drags on the Dow.
In contrast, shares of conglomerate GE, a Dow component,
inched up just 1 penny, or 0.07 percent, to $13.57.
The S&P 500 <.SPX> has rallied 39.3 percent since hitting
a 12-year closing low on March 9, leading analysts to
speculate a correction was ahead, although recent dips have
been brief.
Trading volume was low on the New York Stock Exchange,
with about 1.06 billion shares changing hands, below last
year's estimated daily average of 1.49 billion, while on
Nasdaq, about 2.17 billion shares traded, below last year's
daily average of 2.28 billion.
Advancing stocks outnumbered declining ones on the NYSE by
1,812 to 1,191 while on the Nasdaq, advancers beat decliners
by 1,590 to 1,052.
(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)
