Software and Semi's are dragging on the NASDAQ:
From Briefing.com: 12:46AM Sector Watch : Midway through today's session, the following sector indices are experiencing strength or weakness: Biotech/BTK (+3.2%), DJ Steel (+2.2%), Gold-Silver/XAU (+2.1%), DJ Railroads (+2.1%), DJ Auto Manufacturing (+2.0%)... DJ Broadcasting (-2.3%), DJ Home Construction (-2.0%), GSTI Software/GSO (-1.7%), Semiconductor/SOXX (-1.7%), Telecom/XTC (-1.6%).
12:00PM : The market has spent the session in the black with early strength provided by the biotech sector and Cisco Systems (CSCO +3.1%). The Biotech index (BTK +4.1%) has been powered by gains in Genentech (DNA +3.2%)-- upgraded by Thomas Weisel and IDEC Pharm (IDPH +6.9%)-- raised guidance, with a good dose of short covering also likely a factor as the group plunged 17% over the previous three weeks. As far as tech bellwether CSCO is concerned, the Street has come out in defense in the wake of the earnings warning rumors yesterday. Merrill Lynch made positive comments and Needham upgraded the stock. Positive developments have also been noted in retail with Tommy Hilfiger (TOM +11.6%) upgraded by Wachovia while Sears (S +6.3%) raised its growth outlook. The market averages have weakened in more recent trade with the semiconductor sector, again back in negative territory, contributing to the Nasdaq under performance. Also weighing on the tech dominated index are the telecom, wireless and software groups. The latter has been hurt by Siebel (SEBL -7.8%) after estimate cuts prior to the open and reports of cautious comments from the company at a conference. Volume is modest with market internals still bullish for the NYSE while the Nasdaq readings have turned mixed. Treasuries mildly weaker, particularly the long end, all session.DOT +0.6%, SOX -0.6%, XOI +0.4%, NYSE Adv/Dec 2047/941, Nasdaq Adv/Dec 1771/1442
11:49AM NVIDIA Corp: Investors flee as Xbox slows (NVDA) 38.15 -2.61: -- Update -- Momentum driven stock being upended by talk of slowing Xbox sales. As reported at 09:27, SoundView believes that domestic Xbox sales may not be making up for slow launches in Europe and Japan, and that Xbox price cuts are increasingly likely.
11:27AM Siebel Systems falls on Bloomberg story -- traders 25.59 -1.97: -- Update -- Traders attributing intraday flop to Bloomberg story that Siebel expects 100-200 information technology companies to close this yr due to weak software demand. Speaking at a presentation in Madrid, co reported to have called Q1 possibly the worst in industry history
From Yesterday: Alpha Ind (AHAA) 13.65 -0.88: Announces that its quad-band InGaP HBT power amplifier module has been designed into two new-generation mobile phones scheduled to be introduced in 2002 by a top-tier wireless handset OEM.
Broadcom (BRCM) 32.79 -1.10: CE Unterberg Towbin upgraded BRCM to BUY from Mkt Perform; firm is increasingly enthusiastic about co's core biz, and believes that the Mobilink acquisition will expand BRCM's total addressable mkt by several bln dollars over the next 3-5 years. Raises 2002 rev/EPS ests to $1.086 bln/($0.20) from $1.06 bln/($0.21) and 2003 to $1.48 bln/$0.32 from $1.28 bln/$0.16; price target is $45.
GlobeSpan Virata (GSPN) 12.17 -0.61: Frost Sec comments on yesterday's late day price plunge. Believes stock was hit by rumors that GSPN's MarQ results were not likely to meet expectations. Based on what firm has been able to piece together, there appears to be very little substance behind this speculation. Frost reiterates its Strong Buy rating.
Microchip (MCHP) 42.16 +0.81: Morgan Stanley upgrades to OVERWEIGHT from Equal Weight after the co raised guidance last night, and says that they continue to believe that it is one of the most attractive stocks in their coverage universe; modestly raises 2002-04 ests and raises price target to $55 from $52.
Semi Components : Soundview gives their Q1 preview; believes investors will view qtr as a continuation of the trends that began in Q4. Firm admits that "although Q1 reports and Q2 outlooks could certainly seem muted, we don't think the conservatism expressed will be enough to cause a broad correction in the group." Soundview's shopping list ahead of Q1 reports includes TXN, ADI, CRUS and LSI; firm would continue to avoid INTC and AMD as increasing signs of PC component concerns have yet to fully weigh in.
If the SOX and Software sectors can rebound some then we can still see a postive close.
Big if I suppose but tonight we begin earnings season in earnest.
Crossy good luck with OBAS. Great write up on that stock.
Thanks, RtS |
