The SOX has reached another defining moment in my opinion. This index has of course led the NASDAQ higher since 9/21 and has never really broken below the middle of its upward channel for more than a session, or two, since it first began to exhibit leadership. Early indications are not good that earnings or projections will be coming in good this quarter. Note the action on PLXS after hours. Down over 10% I expect it will fare little better than TQNT did today when it reopens tomorrow.
Anyway, tomorrow will be very interesting. If we follow the recent pattern then the index may sell off but it should rally back to close higher. If not then we may need some positive words from INTC, CSCO or MSFT to help the market.
stockcharts.com[h,a]daclyyay[pb50!b200!d20,2][vc60][iUb14!La12,26,9!Lk14]
From Briefing.com: Close Dow +72.10 at 10070.49, S&P +8.89 at 1149.56, Nasdaq -12.61 at 1982.89: A broad based decline was noted in early action with negative news/warnings from a number of companies and the subsequent downgrades weighing on the proceedings. The headliners included: Motorola (MOT -5.1%), TriQuint Semi (TQNT -14.8%), Micron Tech (MU -5.3%) and Alcoa (-6%).
4:47PM Plexus Corp (PLXS) 30.74 -0.81: Company warns for Q1 (Dec); expects earnings in the range of $0.01-$0.02 per share versus the current consensus estimate of $0.10 per share; expects sales of approximately $200 mln versus the current consensus estimate of $212 mln.
4:25PM SpeedFam-IPEC (SFAM) 2.81 -0.09 (-3.1%): Reports Q2 EPS of ($0.45), beating consensus est of ($0.51); sales came in at $25.8 mln, short of consensus of $38.0 mln. Company will host a conference call and webcast today at 5:00 PM ET.
10:02AM Robbie on EMC & ALTR : Sources at Robertson Stephens telling us that they are cautious on EMC and ALTR, hearing EMC is cancelling orders at ALTR.
9:23AM SanDisk Corp (SNDK) 16.72: Co intends to offer $100 mln in convertible subordinated notes due 2006.
1:00PM : The market averages have spent the last hour consolidating with the Nasdaq continuing to underperform as it slipped further back off this morning's stimulus related recovery high. The semiconductor sector has remained the biggest drag with the SOX (-3.4%) back vacillating just above the session low. Motorola (MOT -5.9%) has triggered the breakdown with its negative news and job cut announcements but also seeing sizeable losses in Altera (ALTR -5.2%), National Semi (NSM -4.4%), Texas Instruments (TXN -4.6%) and Lattice Semi (LSCC -3.9%). Market internals for the NYSE are somewhat disappointing as the A/D line has remained negative throughout. SOX -3.4%, NYSE Adv/Dec 1401/1638, Nasdaq Adv/Dec 1476/1966
finance.yahoo.com
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