Stocks mixed after Intel boosts forecast

— -- Stocks were mixed in early trading Friday as technology shares got a boost from a rosy sales outlook from Intel.

Intel shares helped to lift the Nasdaq composite index after the world's largest maker of computer chips said it now expects sales of up to $9.2 billion in the current quarter, up from its previous forecast of as much as $8.9 billion.

Intel's upbeat report came a day after computer maker Dell posted better-than-expected results for its May-July quarter. While Dell's sales continued to fall because of reduced spending by consumers and businesses, the company said it has seen signs of improvement.

Despite a rise of nearly 5% in the Dow Jones industrials over the past eight days, the market remains cautious. Investors are worried that the market's huge rally this spring and summer, which pushed stocks up more than 45% since early March, may have run its course. Trading has been choppy and volume has been light as summer on Wall Street winds to a close.

Among the economic data Friday, a Commerce Department report said consumer spending rose 0.2% in July, in line with economists' expectations.

Growth in spending and consumer confidence has been slowed by rising unemployment and weak income growth. Spending got a boost during the month from an increase in auto sales tied to the popular Cash for Clunkers program. Recent economic data has benefited from the government's various stimulus programs, and investors have been worried about how well the economy will fare without government support.

The latest report also said personal income was flat in July. Economists had expected a 0.2% increase. Personal income, which fuels future spending increases, has been hammered during the recession as employers cut payrolls and force workers to take unpaid days off to hold down wage costs.