A warning from Texas Instruments hammered chip stocks on Tuesday.
The Nasdaq lost 16 to 1292, the S&P 500 lost 9 to 890, and the Dow fell 88 to 8450. Volume rose to 1.51 billion shares on the NYSE, and 1.72 billion on the Nasdaq. Decliners led 21 to 10 on the NYSE, and 19 to 13 on the Nasdaq. Downside volume was 69% on the NYSE, and 53% on the Nasdaq.
After the close, KLA-Tencor
fell despite beating estimates; Cymer
missed estimates; and Computer Associates
, Silicon Labs
, Storage Tech
During the day, Texas Instruments
plunged 18% after missing estimates and warning, sending the semiconductor index to a 6% loss. Taiwan Semi
fell 7% after missing estimates.
rose 2.5% on optimism that the company won’t warn. Cisco reports earnings Nov. 6.
fell on their results, and JDA
rose after beating estimates.
fell 22% on a warning.
J2 Global Communications
notched a new 52-week high.
gained 6% on better than expected results.
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The first negative sign to appear in this rally was today’s mild distribution, a sell-off in higher volume than the day before. But on the plus side, the Dow (first chart) and S&P (second chart) both held their May downtrend breakouts today. Those downtrend lines are now critical support, at about 8365 on the Dow and 882-884 on the S&P. Below those levels, the indexes would have bearish breakout failures. The Dow is facing tough resistance in the 8700-8800 area, and the S&P in the 910-920 area. The Nasdaq (third chart) has resistance at 1315-1320 and 1340, and support is 1267 and 1240-1250. The Nasdaq 100 (fourth chart) has support at 930 and 915, and resistance at 985-1000. The SOX, the semiconductor index (fifth chart), has so far failed to clear its May downtrend line at about 282. Support is 250-260.
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