Good Cop, Bad Cop — Who Wins?
This piece was
written by Greg Che.
Markets opened mixed even after a tier-one
analyst upgraded the semiconductor index prior to the opening of trading Monday.
Breadth thus far for the session is
negative and volume continues to be light for the broader markets.
Goldman Sachs upgraded a number of
stocks in the U.S. semiconductor sector, putting the sector at an Overweight
rating. The companies which were upgraded in the sector were Intel (INTC),
Qualcomm (QCOM), Conexant Systems (CNXT), Broadcom (BRCM) and Microtune (TUNE)
from Market Outperform to Recommend List. Goldman Sachs also raised its ratings
on Analog Devices (ADI) and Maxim Integrated (MXIM) to Recommend List from Hold
and upgraded Linear Technologies (LLTC) from Hold to Outperform.
What appears to be holding this market
at bay is the Lehman Brothers report which contradicts the Goldman Sachs
comments on the semiconductor sector. The report is conflicting to say the least,
as traders remain apprehensive as to which analyst is correct. A classic case of
good cop bad/cop.
The Nasdaq is up .15 at 1956.62, the
Dow is down 35.70 at 10380.55, and the S&P 500 is down 3.46 at 1186.70.Â
Barr Laboratories (BRL) is up 3.23
points at 83.01 after pulling back from its high made two weeks ago.
Affiliated Computer Services (ACS) is
trading at 79.90, up 2.20 after the company announced it was awarded a contract
for healthcare claims processing in conjunction with The Regence Group.
Valspara (VAL) gapped open and is up
2.29 points at 36.01 after the company reported Q3 earnings of 51 cents a share,
beating analysts’ expectations of 50 cents a share according to a survey taken
by Thomson Financial/First Call.
Intergral Systems (ISYS) is trading
lower 1.77 at 19.73 after posting Q3 earnings of 10 cents a share, falling short
of analysts’ consensus of 14 cents based on a poll taken by research firm
Thomson Financial/First Call.
Broadcom (BRCM) and Qualcomm (QCOM)
are reaping the rewards of the Goldman Sachs upgrades as the semiconductor
companies are scaling higher in the session. BRCM is up 2.02 at 44.57 and QCOM
is trading at 65.58 higher by 1.81.
REIT Pulte Homes (PHM) is down 2.76
points at 33.13.
Leap Wireless International (LWIN) is
lower 2.61.
Footwear maker Reebok International (RBK)
is trading lower at 28.00, shedding 2.65 points.
Optimal Robotics (OPMR) scooted higher
mid-day after closing strong on Friday. It is trading at 51.31 up 3.01
On a percentage basis, the
Biotechnology Index ($BTK.X), Oil Index ($XOI.X) and the Gold and Silver Index ($XAU.X)
are leading the session. In the red are the Transportation Index ($TRX.X), the
Airline Index ($XAL.X) and the GSTI Internet Index ($GIN.X).