EmailThe tech sector is trading slightly lower today, outpacing losses in the broader market. Semiconductors are showing relative weakness in the tech space, however, with the Philly Semi Index trading 0.6% lower. RBCN (-3.7%) and MU (-3.6%) are notable laggards in the chip index. Among other major indices, the S&P 500 is trading 0.4% lower, while the NASDAQ is trading 0.2% lower and the QQQ is 0.1% higher on the session. Among tech bellwethers, GOOG (+1.7%) is showing strength, while MSFT (-1.2%) is a notable underperformer.
In earnings last night, FNSR (-10.4%) reported Q2 results in line with consensus and guided lower, while SNPS (-1.0%) posted an inline qtr and guided higher. This morning, OCZ (+5.6%) offered Q3 rev guidance above consensus and raised guidance for FY12. In news, SNPS (-1.0%) announced it will acquire LAVA (+24.5%) for $7.35/Magma share in cash. Also, CLWR (+24.2%) and S (-0.2%) announced agreements potentially worth up to $1.6 bln over the next four years in payments for WiMAX services.
Elsewhere, OPEN (+2.5%) and TECD (+1.3%) announced share repurchase programs. In M&A, there were reports out last night suggesting an Alibaba-led group preparing bid for all of YHOO (+3.0%). Also, we are hearing MSFT (-1.0%) for RIMM (+2.4%) making the rounds.
Among notable analyst upgrades this morning, HPQ (+1.5%) was upgraded to Sector Perform at Pacific Crest, IRF (+0.5%) was upgraded to Outperform at JMP Securities, Argus upgraded STX (-0.5%) to Buy and SOHU (+3.1%) was upgraded to Buy at UBS. Among downgrades, WBMD (-2.3%) was downgraded to Neutral at Cowen, FFIV (-3.4%) was downgraded to Hold at Noble Financial and Brigantine downgraded ADBE (-0.6%) to Sell.
