Cantor Morning News | Tech/Media/Telco

Tech underperformed on Friday led by semis (SOX -1.05%) as earnings in the space were disappointing and FBR’s Craig Berger was cautious on the sector. Some notable decliners included WFR -15%, AUTH -13% and CAVM -6%.

In a software space MFE was up 9% after positive guidance while ARBA declined 9% after mixed earnings/guidance.

Over the weekend UAE’s Telecommunications Regulatory Authority said it will suspend Blackberry service starting October 11 since devices send data to offshore servers that the authorities have no control over.

INTC is reportedly close to buying Infineon’s wireless chip unit, according to WSJ. Recall that the unit produces chips for smartphones, including Apple’s iPhone. Speaking of INTC it seems that computer manufacturers are not impressed with its Atom processor application in tablets, shifting instead to ARM’s architecture and Android platform.

Macro/Technicals

S&P Futures : 1112; 1.25
Resistance: 1125,1150;
Support: 1100, 1077;
SOX : 348.18; -1.00
VIX : 23.5; -2.6

Leaders: PWER +25%, TRID +21%, AXTI +19%, MFE +9.4%
Laggards: LNET -18%, WFR -15%, AUTH -13%, APKT -13%

Active Names

Enterprise/Service/ SW: BR, CIEN, DGIT, MCCC, MSFT, SWI, ASIA

PCs/Devices/Net: BIDU, DELL, ADCT, YHOO

Semis/Circuits: Storage: NVLS, MU, VRGY, AMD, WFR

Network Products: CSCO, BRCD, PLCM, FTR

Telco: CVC, GNCMA, ETM, VZ, T, TWX, ROIAK, LEAP

Electronic components: APH, TNB, ENS, SANM, ENTG

Media: AOL, CVC, SIRI, PLA, VMED

Smaller Caps: BDE, MTSN, ADPT, HYC, ORCC, VTSSD

Sector News, M&A, Capital Raises

TV: Internet-enabled TV trumps 3D TV in 2010- iSuppli

AAPL: Apple has mysteriously pulled the videos of rival phones suffering a drop in signal bars due to "death grip."

DCM NTT DoCoMo plans to invest ~ ¥10B to make PacketVideo a wholly-owned unit -- Nikkei

TSEM Tower Semiconductor drops plans to acquire US foundry - Globes

TER, HPQ, XRX, EFII, GLW Technology Trader discusses tech investors increasing fears. Seligman’s Paul Wick like Teradyne, Hewlett-Packard, Xerox and Electronics for Imaging. Corning’s CFO thinks the stock is underappreciated.

IM Plugged In is positive on Ingram Micro.

DISH, CMCSA DISH Network to complain to FCC that Comcast is not letting it carry Comcast SportsNet Philadelphia - AP

CIDM Cinedigm Digital Cinema enters stock purchase agreement with Grassmere Partners

MENT Mentor Graphics holder Carl Icahn discloses a 14.13% stake in amended 13D filing

ICOG ICO Global Communications receives unfavorable ruling in UK judicial review

Hackers: A computer security researcher has built a device for just $1,500 that can intercept some kinds of cell phone calls and record everything that's said- AP

GOOG: Security experts release software to attack Android phones- AppleInsider

AAPL: Apple sues "inferior quality" iPod, iPhone and iPad accessory makers- AppleInsider

NSN: Private equity eyeing NSN Nokia Siemens stake- Reuters

T, VZ, AT&T and Verizon Said to Target V Visa, MA MasterCard With Smartphones- BBG

The partnership, which also includes Deutsche Telekom AG unit T-Mobile USA, may work with DIS Discover Financial and Barclays to test a system at stores in Atlanta and three other U.S. cities that would let a consumer pay with the contactless wave of a smartphone

http://www.thestreet.com/story/10823411/1/att-verizon-planning-payments-venture.html

DRAM revenues grow 15% on quarter in 2Q10- DRAMeXchange

INTC Intel Nears Chip Pact- WSJ

http://online.wsj.com/article/SB10001424052748703999304575399551848849256.html

GOOG, Smartphones: Analysts at Canalys have crunched the latest facts and figures from everyone’s Q2 financial results and have unearthed that smartphones shipments grew 64% world wide compared to Q2 2009, and that the number of Android device that have shipped in the same year on year period has increased a startling 886%- IntoMobile

Research Away

CAVM added to short-term buy list at Deutsche Bank

LLTC downgraded to underperform from buy at Bank of America Merrill Lynch

RW Baird downgrades DIOD, FCS, MU, ONNN, TXN, STM

DIOD downgraded to neutral from outperform

FCS downgraded to neutral from outperform

MU downgraded to neutral from outperform

ONNN downgraded to neutral from outperform

STM downgraded to neutral from outperform

TXN downgraded to neutral from outperform

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