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Strategies & Market Trends : Guidance II -- Ignore unavailable to you. Want to Upgrade?

To: 2MAR$ who wrote (983)	7/9/2002 1:56:26 PM
From: 2MAR$	Respond to of 2077

Chip equipment makers fall on new industry fears NEW YORK, July 9 (Reuters) - Fears that chipmakers will delay upgrading and expanding their factories sent semiconductor equipment stocks sharply lower on Tuesday, in a selloff encouraged by negative comments from two brokerages. "We believe estimates on the Street are still too high, and need to be revised downward in the fairly near term," Deutsche Bank Securities analyst Timothy Arcuri wrote in a research note. Arcuri said a pickup in chip equipment orders during the first half of the year is likely to lose steam in the second half. He also cut his 2003 semiconductor capital equipment spending forecast for 2003 to a rise of 15 percent from a rise of 30 percent. Shares of the industry's dominant player, Applied Materials Inc. <AMAT.O> fell $1.04, or 5.6 percent, to $17.96. Teradyne Inc. <TER.N> dropped 70 cents, or 3.2 percent, to $20.63, while Novellus Systems Inc. <NVLS.O> fell $2.03, or 6.5 percent, to $29.12. Merrill Lynch analyst Brett Hodess also cut his 2003 capital spending forecast to a range of 20 percent to 25 percent from a previous estimate of 30 percent. The chip equipment industry suffered during last year's semiconductor slump, the worst on record, but has rallied on early signs that chip makers were once again confident enough to raise their capital spending budgets. The recovery in technology demand -- long expected by Wall Street analysts -- has failed to materialize, yet. On Tuesday, Dell Computer Corp. <DELL.O>, the No. 2 personal computer maker, said it had not seen a pickup in demand for PCs, adding that it was able to stick to its financial targets because of cost cutting and stealing market share from competitors. ((Daniel Sorid, New York Newsdesk, 646-223-6187)) REUTERS * end of story *