Diamonds and Dogs
Chip equipment makers bucking the trend. Applied Materials (AMAT) is up 4% following better than expected earnings even as revenues fell 22% to $3.54 billion. The company issued in line guidance going forward easing fear that business was continuing to deteriorate. The semiconductor industry has been grappling with slowing demand and a cyclical downturn. Management is still not ready to call a bottom, but no more bad news is good news.
Chinese stocks out of favor. The Chinese search engine operator Baidu (BIDU) is down 15% to a four year low after posting its first quarterly loss since its listing back in 2005.The company forecasted quarterly revenue below market estimates, saying they see a challenging marketing environment. The tech giant also pointed to the income impact of heightened government scrutiny of online advertising aimed at reducing the visibility of potentially fraudulent businesses.