500 gauge of semiconductor stocks increased 1.8percentthethe biggest increase among the index's 24 industry groups.
In the summer of 2002, Mr. Olstein bought a number of semiconductor stocks because of his view that their low valuations, relatively sound balance sheets and potentially heightened demand could lift prices over time.
In the technology sector, investors moved out of semiconductor stocks, which are considered by some analysts to be the equivalent of cyclicals.
A leading index of semiconductor stocks gained 5percentt yesterday after a trade association reported that the chip equipment industry's book-to-bill ratio improved in July.
Investors bailed out of semiconductor stocks again yesterday, driving the Nasdaq composite index, which rallied 11.7percentt last month, to its second consecutive decline and its biggest since late July.
After the news, shares of National Semiconductor, based in Santa Clara, Calif., reversed losses suffered earlier amid concern about overall PC demand and valuations of semiconductor stocks.
And yet investors, perhaps too optimistically, have seized on the SIA's predictions and the few signs of a revival in the market to push up the prices of semiconductor stocks around the world.
Nasdaq's national market industrial index surged 3.9percentt yesterday, an exceptionally strong performance but still far less than the 9.2percentt surge for Philadelphia's index of semiconductor stocks or one comprised of biotechnology companies.
Given the excessive volatility in the market as a whole and the wide swings characteristic of semiconductor stocks in particular, it would take a person of great confidence to make such a trade.
The M100 was no more charitable toward a pair of semiconductor stocks.
