Tech stocks boost Nasdaq

US TECH stocks advanced at midday yesterday as strength in software, chips and telecom gave a lift to the Nasdaq. But the Dow Jones industrial average swung to both sides of the break-even point.

Around 12:10pm ET, the Nasdaq added 13.86 to 1,390.45. The Dow was up 15.59 to 8,887.66. The Standard & Poor’s 500 index was 3.68 higher at 941.11.

“The Nasdaq is up, the Russell 2000 is up, it’s just the Dow that’s quirky. You have aerospace down, Johnson & Johnson, down $0.35 to $54.55 and Philip Morris, which is down on a question of tobacco litigation,” said Donald Selkin, director of research at Joseph Stevens.

”The back-to-school situation for retailers is not looking positive and I think we are seeing a little allocation out of that sector into tech today (Wednesday),” added Charles Payne, CEO and chief analyst at Wall Street Strategies.”

Market breadth was positive. On the New York Stock Exchange, winners topped losers 3-to-2 as 560 million shares changed hands.

On the Nasdaq, advancers topped decliners 7-to-5 as 702 million shares traded.