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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (42555)	1/7/2009 9:34:06 PM
From: Return to Sender	2 Recommendations Respond to of 95587

From Briefing.com: 4:30 pm : A batch of negative news items provided market participants with an excuse to sell into the stock market's recent gains. Trading volume remains low, though, suggesting there is still little conviction behind the moves. Heading into the open, stocks were up roughly 3.5% through the first few sessions of 2009. Stocks finished this session a bit off their lows with a 3.0% loss, which is the largest decline in more than one month. Only 1.2 billion shares traded hands on the NYSE. Though that is in-line with recent levels, it remains well below longer-term trends. A worse-than-expected ADP employment report and a warning from Intel (INTC 14.44, -0.93) underpinned early weakness. The ADP report indicated 693,000 jobs were lost in December. The consensus called for 493,000 job losses. The data support economists' opinions that government data will show a rise in the national unemployment rate, which is scheduled to be announced Friday. Intel cut its fourth quarter revenue estimate for the second time due to continued weakness in its end markets. The company now expects revenue of $8.2 billion, though Wall Street pegged the consensus estimate at $8.7 billion. Shares of INTC traded markedly lower in response. Their weakness weighed on the tech sector (-3.7%) and the Nasdaq. Dow component Alcoa (AA 10.89, -1.23) also made headlines, though its story wasn't much of a surprise. The company announced it will reduce output, capital expenditures, and its global workforce as it contends with a softer economic environment. Such broader headwinds have been hanging over the stock for the last several months. Bank of America (BAC 13.71, -0.57) also made headlines when it announced it is selling part of its stake in China Construction Bank for some $2.8 billion. BAC and peers JPMorgan Chase (JPM 28.09, -1.79) and Wells Fargo (WFC 25.87, -1.67) traded as laggards in the financial sector as investors were reminded that banks have a long way to recovery. Analysts at Oppenheimer expect banks will have to raise capital in 2009, even though banks have already gone on several capital raising campaigns. Such a move could dilute existing shareholders. Financials finished 5.1% lower, replacing energy as the session's worst performing economic sector. Energy shed 3.9% as crude futures fell nearly 12% to close at roughly $42.80 per barrel. Crude dropped as bearish inventory data put demand concerns back into focus. Analysts expected the Department of Energy to report a weekly build of 800,000 barrels, but a build of 6.68 million barrels was reported, instead. The materials sector was able to limit its losses due to strength in Monsanto (MON 86.16, +12.94). Monsanto reported adjusted earnings of $0.90 per share, and raised its outlook for fiscal 2009. The company now expects earnings to range from $4.40 and $4.50 per share. The outlook remains short of the consensus forecast, though. Still, MON gained nearly 18% to finish at its highest level in nearly two months. That provided a bit of relief to the beaten down materials sector, which finished 1.6% lower.DJ30 -245.40 NASDAQ -53.32 NQ100 -2.8% R2K -3.4% SP400 -3.3% SP500 -28.05 NASDAQ Dec/Adv/Vol 2027/713/2.07 bln NYSE Dec/Adv/Vol 2490/622/1.24 bln 4:30PM ON Semiconductor lowers Q4 revs guidance and announces additional cost reduction measures (ONNN) 4.04 -0.20 : Co lower guidance for Q4 (Dec), sees Q4 (Dec) revs of $480-490 mln, down from $500-550 mln vs. $510.22 mln First Call consensus. Co also announces that it is taking additional cost reduction measures. In the fourth quarter of 2008. Co is planning a series of additional permanent and temporary actions to reduce its overall cost structure. These planned actions include: Factory closures planned for the end of 2009 will be brought forward to the middle of 2009. Evaluation of other front-end manufacturing locations are ongoing with the objective of closing an additional location by the end of 2009. Factory shutdowns for 4 to 6 weeks in the first and second quarter of 2009. Three weeks of unpaid time off for senior executives in both the first and second quarter of 2009 (Equates to an approximate 23 percent decrease in base salary). Two weeks of unpaid time off or a 4 day work week (based upon local legal requirements) for other employees in both the first and second quarter of 2009 (Equates to an approximate 15 percent decrease in base salary). No annual merit increases. No bonus payments expected to be paid in 2009. A reduction in worldwide personnel of approximately 1,500 which equates to a reduction of approximately 10 percent of total payroll expenses 09:36 am Intel (INTC) Intel (INTC 14.65, -0.72) said that its fourth quarter revenue will be lower than previous expectations. The company now projects fourth quarter revenue of $8.2 billion compared to the $8.74 billion First Call consensus. Intel said that further weakness in end demand and inventory reductions by its customers in the global PC supply chain were behind the new forecast. Intel also said that its preliminary estimate of gross margin for the quarter is at the bottom of the previous expectation of 55%, plus or minus a couple of points. Intel is scheduled to report its fourth quarter earnings after the close on Jan. 15. 09:35 am F5 Networks downgraded to Hold at Wedbush Morgan; tgt lowered to $24: . Wedbush Morgan downgrades FFIV to Hold from Buy and lowers their tgt to $24 from $25. The firm believes F5's second consecutive negative pre-announcement suggests that there are few catalysts as revenue visibility decreases. Despite the sales miss, the co expects FY09 margin performance to remain in tact, which is a positive. However, the firm is lowering their FY09 revenue estimates to $656.5 mil. and $1.50 from $695.1 mil. and $1.61 (consensus $712.26 and $1.65) respectively, reflecting sales shortfall and our cautious economic view.