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Novellus' says bookings at lower end of spectrum

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Yesterday's after hours mid-quarter conference call with analysts has Novellus Systems (NASDAQ:NVLS) saying that current quarter bookings of $160 million will be at lower end of previously forecasts. Peter Hanley, president of the semiconductor equipment maker reiterated, "These are uncertain and turbulent times." Yesterday, shares of NVLS went out at $46.73 and we're seeing trading at the $44 level in pre-market action.

Novellus Systems (NVLS) - last eleven months

Chip equipment stocks like Applies Materials (NASDAQ:AMAT), KLA- Tencor (NASDAQ:KLAC) and Kullicke and Soffa (NASDAQ:KLIC) will most likely be under some selling pressure at the open of today's trading. Novellus (NVLS) has been one of the stronger technical charts in the space, but a breaking of upward trend near the $42 level would be a sing that this stock may have gotten a bit ahead of itself as it relates to the potential recovery for the chip makers.

Stock Futures Mixed

Stock futures are mixed this morning with S&P futures higher by 1 point to 1,130, Nasdaq futures down 3 to 1,452 and Dow futures are higher by 17 points to 9.940. HL Camp & Company has fair value for the S&P 500 at $1.72, with buy programs set at $3.44 and sell programs set at ($0.02).

Jeff Bailey
Senior Market Technician

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