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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: techanalyst1 who wrote (8070)	8/1/2001 7:19:18 PM
From: Mark Fowler	Respond to of 57684

Goldman's Abbey Cohen Says Overweight in Tech New York, Aug 01, 2001 (123Jump via COMTEX) -- Shares of semiconductor companies remain at or near the highs of the day at 12:00 p.m. EST. The broad 16-stock Philadelphia Semiconductor Index is up 5.90% and above its 200-day simple moving average. Credit Merrill Lynch's (MER) mildly positive outlook for the group going into the second half of the year. The enthusiasm has spread to other areas of technology as the Nasdaq Composite Index advances to its highest value of the session, up more than 43 points, or nearly 2%, to 2070. The tech-laden index is still roughly 90 points below the closing value of 2160 June 29. July's decline was about 6.2%. Since the Nasdaq 100 Index contains several chip and chip-equipment stocks in its mix, the predominately technology-oriented group is up 47.13, or 2.8%. Over at the New York Stock Exchange, the Dow Jones Industrial Average kicked off the lunch period, up 55.36, or 0.53%, to 10578.17, while the Standard & Poor's 500 Index is higher by 8.80, or 0.73%, to 1220.03. The benchmark 500 indicator of large-cap stocks ended June at 1224. An afternoon rally could easily erase that slim difference. That, of course, is what investors and perennially bullish traders want to see the market do instead of taking a 2:00 p.m. EST tumble as it has in the past two sessions. In other news, Goldman Sachs' chief strategist Abbey J. Cohen actually remarked on CNBC this morning, "The worst is over." Ms. Cohen recommended that investors overweight their portfolio holdings 30% to 35% in technology. She also maintained her year-end targets of 12,500 for the Dow and 1550 for the S&P 500. Ms. Cohen never comments on the Nasdaq indexes. Wednesday's chip rally isn't the most powerful we've seen since Nov. 1998 when the group hit its last cyclical bottom, but it's certainly impressive. Practically the entire group is higher, even communications chips, which Merrill didn't include in its morning call. Here's a brief breakdown: Vitesse (VTSS), Broadcom (BRCM), Applied Micro Circuits (AMCC) in the telecom subsector. Altera (ALTR), Xilinix (XLNX) and Linear Technology (LLTC) in the programmable logic group. Advanced Micro Devices (AMD) and Intel Corp. (INTC) in microprocessors. In specialty video and audio: EST Technology (ESST), Pixelworks (PXLW), Kopin Corp. (KOPN), Genesis Microchip (GNSS), Zoran (ZRAN) and NVIDIA (NVDA). From the tool-making group: Novellus Systems (NVLS), Applied Materials (AMAT) and Lam Research (LRCX). From the analog group: Analog Devices (ADI) and Cypress Semiconductor (CY). Since we're on a symbol-dropping roll, other chip-stocks ticking higher: Brooks Automation (BRKS), Helix Tech (HELX), Asyst Tech (ASYT) and PRI Automation (PRIA). Despite reporting Monday that its current-quarter outlook was poor, custom microchip firm United Microelectronics (UMC) is higher this afternoon. Competitors Taiwan Semiconductor (TSM), the leader in the foundry space, and Singapore's Chartered Semiconductor (CHRT) sport gains. Meanwhile, at 12:25 p.m. EST, the composite index has found additional traction to trade at 2075, up 48. The lunch period gain is about 12 points better than yesterday's advance at this time junction. Breadth figures are also better with advances topping decliners 19-to-13. On-balance volume is plus-448 million shares. If the enthusiasm continues, uptick turnover could approach 1 billion shares by Crunch Time. Stocks that fell to 52-week lows last week continue to rebound: Supply-chain management consulting firm i2 Technologies (ITWO), from 8.17 to 10.40 this afternoon. Data-storage giant EMC Corp. (EMC), from 17.60 to 20.60. Competitor Network Appliance (NTAP) , from 9.55 to 15.46. Shares were up 2.98, or 23% on guidance issued by management of the network-attached data-storage equipment maker that its earnings would meet analysts' expectations at the Aug. 14 release date. Web-based business-software provider BEA Systems (BEAS), from 19.01 to 23.42. The company also reports earnings Aug. 14. Internet security software firm Check Point Software (CHKP), from 35.01 to 45.65.