Semiconductor Equipment Meltdown
All of the semiconductor equipment makers are under sharp selling pressure this morning. Novellus Systems Inc.(NASDAQ:NVLS) reported earnings last night and the stock is not being well received by the markets. The company reported better than expected earnings but the outlook was very weak. The stock is trading lower by $2.71 to $33.06 a share. NVLS stock has a lot of daily chart support around the $32.50 area. This weak outlook is putting pressure on the rest of the leading stocks in the semiconductor equipment sector. KLA-Tencor Corp.(NASDAQ:KLAC), Applied Material Inc.(NASDAQ:AMAT), and Lam Research Corp.(NASDAQ:LRCX) are all declining sharply lower at the open.
Many of the leading semiconductor developers and manufacturers are also declining on the news. The Semiconductor Holders Trust(NYSE:SMH) is trading lower by $1.24 to $32.92 a share. The largest position or holding in the SMH is Intel Corp.(NASDAQ:INTC). Traders must watch these stocks closely as this sector should be in play throughout the trading session.