Shares of Motorola (NYSE:MOT) $12.18 are trading down $1.08, or 8.9% to $11.10 this morning as its COO Ed Breen tendered his resignation and said he was taking over the top spot as CEO of Tyco (NYSE:TYC) $8.25. While traders respond negatively to shares of Motorola, Tyco's (TYC) shares jumped $2.75 or 33%, to $11 over the Redibook EDN.
J.P. Morgan views the new CEO appointment at Tyco as a positive as it helps remove much of the uncertainty surrounding the stock.
CIBC World Markets views the loss of Ed Breen a negative for Motorola a negative and downgrades the stock to "hold" from "buy" following Breen's departure.
Chip equipment makers see marginal gains
Shares of Applied Materials (NASDAQ:AMAT) $14.23 are edging up $0.87 to $15.10, Novellus Systems (NASDAQ:NVLS) $24.33 are gaining $0.60 to $24.93 and KLA-Tencor (NASDAQ:KLAC) $38.40 rose $1.05 to $39.45 in pre-market action after Goldman Sachs upgrades the group to "trading buy."
Yesterday's drubbing in the semi-equipment stocks was prompted by Taiwan Semiconductor's (NYSE:TSM) $9.08 second quarter report, which fell short of profit targets and also warned that wafer shipments would decline "moderately" sequentially and indicated capital expenditures would be cut.
Stock futures rebound from earlier losses
As the opening bell, stock futures have rebounded substantially from earlier lows and now show gains with S&P futures (sp02u) higher by 4.20 to 841, NASDAQ futures (nd02u) are up 15 at 912 and Dow futures have edged into positive territory, gaining 30 to 8,200.
The recovery in the stock futures has them above fair value and indication now look like a higher open for stocks. Fair value for the S&P 500 today is $0.85. That price will not change during the day. HL Camp & Company has their computers set for program buying at $2.67 and set for program selling at $-2.54. Fair value for the NASDAQ-100 today is $3.18.