Chip stocks' early gains fizzle
By Janet Haney, CBS.MarketWatch.com
Last Update: 12:06 PM ET Aug 4, 2000 NewsWatch
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NEW YORK (CBS.MW) -- Semiconductor stocks fizzled in recent trading Friday, unable to hold the line on the sector's early advances.
The Philadelphia Semiconductor Index ($SOX) dropped 2.7 percent to 924.49 after being as high as 973.20 earlier in the session. The index has been down in four of this week's sessions.
The cyclical nature of the semiconductor market has been the subject of much discussion lately in financial circles. Weighing in, Lehman Bros. provided a list of 10 reasons why its analysts and strategists think the chip equipment cycle is in good shape.
The investment firm cited huge demand for electronics products and continuing capacity shortages in the industry. Lehman also characterized the semiconductor industry as "fundamentally healthy."
"Unit volumes are rising, pricing trends are normal, and there does not appear to be large inventory accumulations of chips," analyst Ed White in a research note.
Within the sector, chip equipment maker Applied Materials (AMAT: news, chart) dipped 1 7/8 to 67 1/8, ahead of its third-quarter earnings release set for Aug. 9.
Other chip gear stocks were also volatile. KLA-Tencor (KLAC: news, chart) slipped 1/16 to 44 5/8 and Teradyne (TER: news, chart) lost 4 5/8 to 49.
Elsewhere, chip behemoth Intel (INTC: news, chart) and rival Advanced Micro Devices (AMD: news, chart) shares also lost ground.
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Janet Haney is a reporter for CBS.MarketWatch.com. |
