These Chips Are Better
Chip makers are outperforming blue chips as some
participants anticipated an up-tick in semiconductor demand amid
disappointing performance from some of America’s best-known companies.
The Nasdaq is up 1.50% at 31.66, the Dow is up up
.21% at 9359, and the S&P 500 is up .17% at 1086.58.
Semiconductor stocks got a boost as an indicator of
orders for semiconductors turned up, suggesting increasing demand for chips.
Six months ago the so-called book-to-bill ratio slipped to .44, its lowest
level in years. At the low, the figure showed only $44 of new orders were
booked for every $100 sent. The most recent book-to-bill ratio out from the SEMI,
shows new orders rising slowly but steadily for a book-to-bill ratio of .65
in September.
The chip index
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up 4.2%. Leading stocks here include Novellus
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8% each.
But another kind of chip — the blue chip stocks
represented on the Dow Jones Industrial Average — are languishing on
announcements of dreary performance.
Eastman Kodak
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quarters and announced more job firings.
America’s most widely held stock, AT&T
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its profits were only 11% of the level earned one year ago.
Dow stalwart Du Pont
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reporting a 75% decline in net income.
Kodak is getting hit the hardest, down 13%.
“Telephone” is down 6.84% and Du Pont is holding on slightly
better since it actually edged Street views, down 1.24%.