Looks like a fall to 520 may be imminent for the SOX. More from Briefing.com:
10:46AM Sector Watch: Semiconductor : -- Technical -- With the SOX currently trading at 539, the index has dropped below two notable levels this morning -- its 200-day simple moving average at 554 and its 50-day SMA at 541. On an intraday basis, the sell pressure has flattened which means 538/540 should serve as initial support followed by a subsequent floor at 520. To the upside, look for initial resistance at 554 followed by subsequent overhead in the area of 561/564.
8:53AM Intel (INTC) 34.68: -- Update -- SG Cowen believes that INTC's lowered capex spending plans may concentrate co's focus on 300mm and 0.13 micron lines, leading to investments in copper and perhaps low-k dialectrics, which should benefit KLAC and NVLS.
8:37AM Intel (INTC) 34.68: -- Update -- Bear Stearns Ripple Effect reviews the impact of INTC's earnings report last night: PC demand was strong, which is positive for CY, ICST, and NSM; AMD may be under pressure due to greater availability of P4; regarding capex cut, co's with most INTC exposure are NVLS, TER, LRCX, and RTEC, yet firm believes that sell-off is overdone; those with less or no INTC exposure are MTSN, SMTL, and CMOS.
8:29AM Taiwan Semi (TSM) 18.14: Bear Stearns Ripple Effect says that TSM has recently received orders for high-end chips from ALTR and LSI (according to Taiwan's local press).
8:11AM Semi Equipment : After Intel's (INTC) announcement of a 25% cut in capital spending for 2002, Banc of America Securities now believes that capex for the 25 largest semi companies will fall 26% from 2001 and 50% from 2000; sees Intel's capex remaining in the $5.5-6.5 bln range for several years as capex relative to revenues is at a 15-year high while return on capital is at a 15-year low.
7:37AM LSI Logic (LSI) 15.50: Co announces a 20% reduction in its workforce and reiterates guidance for Q4 of a $0.23 loss (consensus -$0.24). LSI continues to see 0%-5% rev growth from Q3 level (consensus +3%). As part of its restructuring, co plans to divest its CDMA handset and DSL standard product business units.
7:10AM Intel (INTC) 34.68: CSFB upgrades to BUY from Hold, based on capex and headcount cuts that better position INTC for upgrade cycle and efficiencies from 300mm in 2003. Owing to projected higher gross margins, firm raises Q1 est by a penny to $0.15 on rev of $6.8 bln, raises 2002 by 7 cents to $0.70 on rev of $29 bln, and raises 2003 by 11 cents to $0.99 on rev of $33.1 bln.
6:56AM Amkor Tech (AMKR) 19.30: Announces that Agilent Tech (A) will outsource its printer ASIC assembly requirements to Amkor.
6:41AM Xicor (XICO) 11.20: Co teams with Motorola to provide radio frequency power amplifier reference platforms for GSM, EDGE and W-CDMA cellular basestation applications. This effort will enable Motorola to enhance its existing reference designs with the incorporation of Xicor's "Smart Bias" ICs.
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Watching and waiting, RtS |
