From Briefing.com: 12:55PM Semiconductor sector lifts modestly off support : -- Technical -- The semiconductor sector is on the defensive today, led by a sizeable intraday loss in sector leader Intel (INTC -5.4%). SOX is off by 3.9% at this point in the session, currently trading at 378. From current levels, look for initial support at 375 -- from which the index is currently getting a lift -- followed by another notable support point at 367. To the upside, watch for modest initial resistance at 380 which is followed by additional overhead in the area of 385 to 387.
11:01AM NVIDIA Intraday (NVDA) 19.06 +0.07: -- Technical -- Stock demonstrating relative strength, holding in modestly positive territory. From current levels, look for initial resistance in the area of 19.30 followed by modest overhead at 19.55 and a more significant level in the area of 20.00/20.15. Note that the favorable intraday tone would be placed in question on a failure to hold very near-term support at 18.85.
10:32AM Nasdaq Composite testing support at 1419/1423 : -- Technical -- Index is solidly lower to start the session, currently testing support in the range of 1419 to 1423. Note this area is significant as it brackets the reaction lows of both September 2001 and October 1998. On a failure to hold support at 1419, watch for modest subsequent support at 1411 followed by a more important floor at 1401. To the upside, look for initial resistance at 1431 followed by additional overhead at 1440.
10:01AM Buffett ignites telco rally : Berkshire Hathaway's $100 mln investment in Level 3 (LVLT +61%) is fueling a bounce in the badly beaten telecom services complex. Micro-Cap stock Time Warner Telecom (TWTC +10%) is one of the names being picked up as a secondary play to the news.
9:52AM Cabot Micro follows semi-equipment group lower (CCMP) 41.26 -0.84: Stock is also being pressured by negative report in Barron's over the weekend (see Sunday's In Play). Worth noting that CCMP already has a fairly large short-interest, with more than 25% of the float sold short.
9:17AM Needham cuts estimates, targets for select semi equipment stocks : Needham slashes ests and price targets for AMAT, NVLS, KLAC, and CYMI and expects shares to remain under pressure over the next few weeks, particularly as consensus ests continue to migrate downward; cuts AMAT FY03 est to $0.64 from $0.74 and cuts target to $25 from $30; cuts NVLS FY02 est to $0.40 from $0.42, FY03 to $1.11 from $1.54, and target to $39 from $62; cuts KLAC FY03 est to $1.35 from $1.47 and target to $58 from $72; and cuts CYMI FY02 est to $0.71 from $0.80, FY03 to $1.50 from $1.80, and target to $45 from $63.
6:40AM Level 3 sells debt to investors including Buffett's Berkshire (LVLT) 2.89: Enters an agreement to sell $500 mln of its 9% junior convertible subordinated notes to three institutions: Longleaf Partners Funds ($300 mln), Berkshire Hathaway ($100 mln), and Legg Mason ($100 mln). Level 3 plans to use the funds for general corporate purposes, including potential acquisitions relating to industry consolidation opportunities.
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I agree with everything you said Michael. The market would really like to rally today but with the downgrade in the semiconductors and the MRK news it's pretty much a tall order.
RtS |
