Market/Sector Trends
11/19/2009 11:53 AM ET
(RTTNews) -
After trending higher for the first half of the month, semiconductor stocks are seeing notable weakness during trading on Thursday. The weakness in the sector comes on some negative analyst comments, with Bank of America-Merrill Lynch cutting its rating on the sector
The losses by semiconductor stocks have resulted in the 4 percent loss currently being shown by the Philadelphia Semiconductor Index. Despite the retreat, the index remains stuck in a recent trading range.
Within the sector, shares of Intel are currently down by 5.5 percent, although they remain in a range. The loss by Intel comes after BofA-Merrill Lynch downgraded its rating on the stock to Neutral from Buy
The downgrade came after BofA-Merrill Lynch lowered its outlook for global growth in the semiconductor industry in the year 2010 to 18 percent from 21 percent.
Marvell Technology (MRVL) and Texas Instruments (TXN) are also moving lower by substantial margins, sliding by 6.6 percent and 4.5 percent, respectively after seeing comparable downgrades. The stocks are backing off of the more than one-year closing highs set earlier this month.
Further, ASML Holding (ASML) is down by 6.3 percent, falling from the nearly two-year high set this week, while a 3.7 percent decline by Power Integrations Inc. (POWI) is pulling the stock off of its best closing level in nearly six years.
LSI Corp. (LSI), ArvinMeritor (ARM), Microchip Technology (MCHP), Maxim Integrated Products (MXIM) and National Semiconductor Corp. (NSM) are also retreating after being downgraded, although they largely remain rangebound.
by RTT Staff Writer
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