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Shares of Intel and rival Advanced Micro Devices Inc climbed 1 percent in after-hours trade. Analysts said Intel set a positive tone for the latest tech earnings, which some had feared would spell a disappointing holiday shopping season.

Intel's forecast for a better-than-expected December quarter gross margin of 67 percent -- plus or minus a couple percentage points -- affirmed hopes that higher-end spending on servers or data centers may help offset the loss of computer sales to a booming tablet segment.

And Chief Executive Paul Otellini told analysts on a conference call on Tuesday that early demand for Sandy Bridge -- its next-generation chip combining central processing and graphical functions -- was much greater than originally anticipated.

"Intel has set a high bar for tech earnings," said Canaccord Genuity analyst Bobby Burleson. "There was concern about Q4 ... and the number is better than the Street expected."

"The question really is, what's the mix of business? And the margin's good, which seems to hint at a better mix, and maybe a little more business on the data center and server side."

The world's largest chipmaker forecast revenue of $11.0 billion to $11.8 billion in the final three months of 2010, in line with analysts' expectations of $11.32 billion, according to Thomson Reuters I/B/E/S. (For a graphic on Intel earnings, click: link.reuters.com/byj28p)

"We'll see the consumer market growing but likely a little less than you'd normally expect. I attribute that to consumers pulling back a little bit based on economic uncertainty," Intel Chief Financial Officer Stacy Smith told Reuters.

LITTLE NUMBERS DRAMA

Shares of Intel rose to $20 in extended trading after closing 1.07 percent higher at $19.77 on Nasdaq.

Its third-quarter net profit was $2.955 billion, or 52 cents a share, versus $1.86 billion in the year-ago quarter. That was slightly higher than the 50 cents per share expected by analysts.

Revenue in the quarter ended September 25 was $11.1 billion, slightly above the $10.99 billion expected.

Since Intel warned in August about weak consumer demand for personal computers, semiconductor stocks have surged in part on expectations that the worst may be over for the technology sector, and investors are looking for signs of strength to back their bets -- or sell.

Longer term, Wall Street remains concerned about the threat to Intel, whose microprocessor brains drive eight out of 10 of the world's personal computers, from the fast-growing tablet segment popularized by Apple's iPad.

"Consumers will have a limited amount of discretionary income and some will choose to purchase a tablet instead of upgrading an existing PC or purchasing a netbook in any given period," Otellini conceded on the conference call.

The Fed officials who gathered on September 21 focused both on the possibility of buying more longer-term U.S. government debt to drive borrowing costs lower and ways to nudge the public into expecting higher levels of inflation in the future to spur spending, the central bank said on Tuesday.

Policy-makers had a "sense that (more) accommodation may be appropriate before long," minutes of the meeting said.

The U.S. central bank's policy committee released its members' views as international debate intensified over how the Fed's easy monetary policy was driving down the dollar and in turn boosting the currencies of many emerging economies.

To help shift inflation expectations, policy-makers debated providing more detail on what rates of inflation they would prefer and discussed showing a willingness to tolerate even higher inflation temporarily, a policy approach known as price-level targeting.

They also considered the possibility of targeting a path for GDP growth.

The news helped U.S. stocks trim losses, with major indexes ending the day just in positive territory. The dollar was up against the euro for much of the day but lost ground after the minutes were released.

The Fed has kept overnight rates near zero since December 2008 and has bought about $1.7 trillion in bonds to lower other borrowing costs to help the economy recover from the worst recession since the 1930s.

The minutes bolstered expectations the Fed will move to drive down rates further by restarting purchases of Treasury debt as soon as its next meeting on November 2-3. However, they provided no details about the scope of potential purchases.

"The Fed will buy Treasury securities, but in what amount, for how long or until what economic goal is met is unclear," said Paul Ashworth, an economist for Capital Economics in Toronto.

TAILORING THE MESSAGE

The minutes showed the Fed grappling for fresh ways to spur the economy. If the central bank were able to foster higher expectations of future inflation, businesses and consumers may not want to postpone purchases, thereby providing an immediate boost to the economy.

After their September 21 meeting, policymakers said they stood ready to provide more support if needed to keep the recovery on track and raise inflation from undesirably low levels.

Over the past 12 months, the core Consumer Price Index has risen just 0.9 percent. Fed officials would like to see that north of 1.5 percent.

"Many members considered the recent and anticipated progress toward meeting the committee's mandate of maximum employment and price stability to be unsatisfactory," the minutes said.

Policy-makers had a "sense that (more) accommodation may be appropriate before long," the central bank said on Tuesday.

In minutes of the its last policy-setting session held September 21, the Fed said officials discussed several approaches to aiding the economy but focused on buying additional longer-term Treasury securities and ways to nudge the public into expecting higher levels of inflation in the future.

On Wall Street, stocks trimmed their losses, with both the Dow Jones industrial average .DJI and the Standard & Poor's 500 Index .SPX briefly turning higher after the FOMC's minutes came out.

To help shift inflation expectations, policy-makers debated providing more detailed information about what rates of inflation they would prefer, or the possibility of making clear they would tolerate a higher level of inflation on a temporary basis, a policy approach known as price-level targeting.

They also discussed the possibility of targeting a path for GDP growth.

The Fed has kept overnight interest rates near zero since December 2008 and has bought about $1.7 trillion in mortgage-linked securities and longer-term government debt to lower other borrowing costs to help the economy recover from the worst recession since the 1930s.

As the recovery showed signs of fading over the summer, sapped by the drying up of government stimulus measures and the shock of a sovereign debt crisis in Europe, Fed officials said they would consider additional stimulus measures to support the sluggish economy.

The September meeting's minutes showed a number of Fed officials were close to pulling the trigger.

"Many members considered the recent and anticipated progress toward meeting the committee's mandate of maximum employment and price stability to be unsatisfactory," the Fed said.

Several officials felt that unless conditions improved, they would consider it appropriate to take action soon in hopes of spurring a stronger recovery.

(Reporting by Mark Felsenthal and Jason Lange; Editing by Jan Paschal)

GM extended the registration deadline to October 22, the company said on Tuesday in a notice obtained by Reuters. Mailed registrations must be postmarked by October 19.

The stock purchase program also is open to the automaker's dealers in the United States and Canada.

The share purchase program covers U.S. and Canadian employees, directors, retirees and dealers, according to the notice.

The roll-out of the program had been reported, but it was unclear if the share registration would be extended to GM dealers.

GM emerged from a government-funded bankruptcy in July 2009 and plans an IPO that would allow the government to begin reducing its nearly 61 percent stake in the automaker. Canada holds 11.7 percent of GM's common shares.

Mark Whibbs, a dealer at Vince Whibbs Pontiac-Buick-GMC Inc in Pensacola, Florida, said he intends to buy GM stock.

"I think it's a phenomenal opportunity," Whibbs said. "With ... our product and the lean manufacturing team we have at GM, we're very excited about it."

The total number of shares that people may buy under the program has not been determined, but the minimum investment is expected to be more than $1,000, GM said in a notice to potential individual investors.

GM has about 600,000 employees and retirees and 4,500 dealerships in the United States and Canada.

GM spokesman Pete Ternes confirmed that the company sent a letter to employees, retirees and dealers, but declined to comment on its content.

(Reporting by Deepa Seetharaman and Kevin Krolicki. Writing by David Bailey. Editing by Robert MacMillan)

Wal-Mart said the iPad will be available in hundreds of its stores in the United States to start, expanding to more than 2,300 outlets by mid-November.

Wal-Mart rivals Best Buy and Target are already selling the iPad, which Apple launched in April.

Demand for the 10-inch touchscreen tablet has so far been robust, and Apple initially had a difficult time producing enough.

The company sold more than 3 million iPads in the June quarter, and Wall Street expects the company to surpass that mark with ease in the September quarter.

Apple is set to report quarterly results next Monday.

Wal-Mart will sell the iPad for the same price as other retailers, starting at $499 for the more inexpensive model. The world's largest retailer already sells Apple's iPod and iPhone.

Shares of Cupertino, California-based Apple were up $1.75 at $297.11 in midday trading on the Nasdaq.

(Reporting by Gabriel Madway, editing by Matthew Lewis)