RealTime IT News

Chips Slip On Downgrades

Chip stocks lost ground Tuesday after J.P. Morgan downgraded the sector to neutral.

J.P. Morgan said the sector could see falling margins and earnings early next year as demand and utilization rates fall and inventories build up.

J.P. Morgan analysts singled out Cypress , ON and Fairchild as vulnerable to a downturn. The stocks fell 4-6%, and the chip sector ended the day 1.5% lower.

The broader market finished mixed Tuesday on news of big declines in consumer confidence and new home sales.

The Nasdaq slipped 5 to 2116, the S&P was unchanged at 1215, and the Dow added 12 to 10,456. Volume declined to 1.95 billion shares on the NYSE, but rose to 1.62 billion on the Nasdaq. Decliners led 18-13 on the NYSE, and 16-13 on the Nasdaq. Downside volume was 58% on the NYSE, and 57% on the Nasdaq. New highs-new lows were 91-113 on the NYSE, and 89-57 on the Nasdaq.

After the close, Paychex beat estimates.

During the day, Jabil fell 2% on inline results and guidance.

Audible rose 6% on a new mobile phone download service.

Netflix climbed 1.5% on a Bear Stearns upgrade.

Audiovox and SBS tumbled on warnings.

Apropos rose 5% on a buyout offer.