AMAT and LRCX were both upgraded today by RBC Capital Mkts. That helped the SOX a lot today. It also helped the NASDAQ Composite to remain within striking distance of taking out the 200 day moving average.
biz.yahoo.com
It appears to me that the upgrade of AMAT was based on an expected uptick in orders later this year. RBC Capital Mkts expects that this will be discussed by Applied Materials when they report earnings on Feb. 12. They liked LRCX's earnings already reported as well.
biz.yahoo.com
From Briefing.com: Close Dow +44.01 at 9840.08, S&P +1.13 at 1133.28, Nasdaq -4.88 at 1937.70: In today's only economic report, Existing Home Sales fell 0.8% to 5.19 million in December, almost exactly in line with the consensus expectation of 5.18 million. Though slightly down in December, the pace of sales continues to hold up exceptionally well. Also note that November sales were revised fractionally higher to a 5.23 million unit rate from an originally reported 5.21 million. The Home Sales data represent another positive economic data point, though the numbers were largely in line with expectations exerted little impact the broader markets...
The Nasdaq received an intraday lift from favorable guidance out of computer hardware maker Compaq (CPQ). In an intraday conference call, the company increased its earnings projection for fiscal 2002 to $0.32 per share, well ahead of the current consensus estimate of $0.25 per share. The improved outlook stirred buy interest in technology pushing the Nasdaq through its 200-day simple moving average at 1937. Notably, the index finished the session off its best levels closing essentially on its 200-day moving average...
Though there were not earnings releases from bellwether names, there were a few notable earnings reports nonetheless. Wireless technology company Qualcomm (QCOM) reported an in line profit of $0.23 for its fiscal first quarter, though it fell short of revenue estimates and warned for its second quarter. Following Qualcomm's report, CIBC World Markets downgraded the shares to Hold from Strong Buy saying its net new subscriber additions are slowing in 2002 and the company's replacement rate cannot overcome the slowdown. Separately, PC maker Gateway (GTW) reported fourth quarter results that exceeded estimates by a penny. Yet management also added that it expects to experience pre-tax losses for the next few quarters while it regains market share in its core PC business. On the heels of that report, Morgan Stanley downgraded Gateway to Neutral from Outperform and cut its fiscal year 2002 earnings estimates to a $0.16 loss from its prior projection for earnings of $0.26...
Next week, investors will be looking towards both the earnings and the economic reports. On the earnings front, notable reports include Texas Instruments (TXN) after the close on Monday, Veritas Software (VRTS) after the close on Tuesday and AOL-Time Warner (AOL) before the open on Wednesday. Important economic reports include Consumer Confidence due out Tuesday, the Chicago Purchasing Manager's Index set for release on Thursday and the January Employment Report scheduled for Friday.DJTA +1.2%, DJUA +0.1%, Nasdaq 100 -0.4%, Russell 2000 -0.1%, SOX +2.3%, S&P Midcap 400 +0.4%, XOI +0.3%, NYSE Adv/Dec 1599/1496, Nasdaq Adv/Dec 1646/1890
2:07PM Semtech Corp affirms Q4 consensus estimates (SMTC) 34.34 +0.84 (+2.5%): Announces that it expects Q4 EPS of $0.11 on sales of about $46.4 mln, in-line with current ests. The co plans to announce Q4 results on Feb 26 after the close of mkt.
12:41AM Nasdaq comp finally clears 200-day avg : -- Technical -- After several intraday failures index has finally edged past its 200 day simple ma at 1937 with the extension of the recovery rally in the semiconductor sector (SOX +2.3%) pacing the way. Next resistance for the Nasdaq is in the 1948/50 area followed by the stronger ceiling between 1960/1965 (chart barrier, 38% of Jan slide, 50 day simple ma). Important to maintaining the improved intraday bias is a continued stabilization above 1937.
11:30AM : After exhibiting weakness off the open, semiconductors have turned into solidly positive territory. The Philadelphia Semiconductor Index or SOX is currently higher by 3.8 points or 0.7% at this point in the session. A well received earnings report out of communications chip maker PMC Sierra (PMCS +8.5%) is contributing to the buy interest. The company exceeded consensus estimates by a penny and added that revenues seem to be stabilizing. The company cited falling inventories, which it believes should be worked off over the next two quarters. It also added that spot shortages of new products are becoming more acute and stated customer consumption rates are growing. The company's favorable outlook has several of its sector peers higher with Vitesse Semiconductor (VTSS +0.9%), Applied Micro Circuits (AMCC +3.2%) and Cypress Semiconductor (CY +2.2%) each posting intraday gains. DJTA +0.4%, DJUA -0.3%, Nasdaq 100 -0.9%, Russell 2000 -0.2%, S&P Midcap 400 +0.2%, XOI +0.4%, NYSE Adv/Dec 1366/1447, Nasdaq Adv/Dec 1261/1782
10:11AM Nasdaq Composite : Off to a negative start but showing signs of improvement with the semi sector (SOX +0.7%) helping to underpin.. Intraday resistance is at 1937 (200 day simple ma) followed by 1942 and 1950. A breach of these barriers implies that the underlying short term bias is favorable and argues for another run at 1960/1965 (38% of Jan slide, 50 day simple ma) which stymied the push yesterday. Supports are at 1927 and 1923 (session low) in front of 1919/1916.
8:12AM Sanmina-SCI (SANM) 17.19: Thomas Weisel Partners downgrades to ATTRACTIVE from Buy and slashes FY02 EPS estimate to $0.21 from $0.61. CSFB assumes coverage with a BUY rating, below its previous rating of Strong Buy; company cited weakness in the communications market for reduced guidance yesterday.
7:55AM ChipPAC (CHPC) 6.30: Co prices a 10 mln share secondary offering at $6 per share.
7:55AM PMC-Sierra (PMCS) 21.86: Goldman Sachs upgrades to RECOMMENDED LIST from Outperform with a $30 target; cites resumption of revenue growth in Mar qtr and company's operating leverage, but notes that ride up could be bumpy and advises being selective with entry points; introduce FY03 EPS estimate of $0.25.
7:30AM ARM Holdings (ARMHY) 14.35: Some mixed views out of London on ARMHY ahead of its Jan 28 earnings release: Salomon Smith Barney downgrades to UNDERPERFORM from Neutral due to valuation, sees in-line results and further out a degree of multiple contraction; Merrill Lynch recommends buying ARMHY ahead of its results based on continuing momentum.
Wennerstrom Semi Equipment Stocks and Stocks Making News
finance.yahoo.com^SOXX+^IXIC&d=t
We can't expect 5% gains every day on AMAT Don but as long as the SOX tracks higher AMAT will likely hit 47 to 48 again before earnings are released in my opinion.
SOX Chart
stockcharts.com[h,a]dhclyymy[d20000601,20021231][pc20,50!d20,2!f][pc20!c50!i!d20,2!b100!b200!f][vc60][iut!Uo14!La12,26,9!Lh14,3!Lc20]
Have a great weekend and thank you for the compliments on my efforts. This is a great thread. One that shows how well Silicon Investor can work for us all. RtS |
