Cantor Morning News | Tech/Media/Telco

Tech performed generally on par with broader market on Friday with stock moves being primarily news-driven. KLIC sold off 17% after being downgraded at BofA/Merrill. Recall that stock was up 10% on Thursday after reporting good earnings.

HPQ is trading down over 7% this morning as reaction to CEO departure is mixed: Shares are defended in Barron’s and at Citigroup while Deutsche Bank lowered px target citing uncertainties surrounding Hurd’s departure.

It will be interesting to watch RIMM today as there are mixed news and views over the weekend. While Barron’s calls new BlackBerry Torch “evolutionary, but not revolutionary” Bahrain’s Foreign Minister, in a statement said the country does not plan to block BlackBerry service.

On a positive note United Microelectronics reported July revenues up 22.8% y/y.

Macro/Technicals

S&P Futures : 1124.3; +.43
Resistance: 1157;
Support: 1115,1112,1100;
SOX: 351.75; -.20
VIX : 21.74; -1.63

Leaders: NANO +25%, RADS +17%, MCHX +12.45%, FEIC +9%
Laggards: KLIC -11%, ICOG -10.5%, OPWV -8%, CBEY -7.6%

Active Names

Enterprise/Service/ SW: BR, CIEN, MSFT, RNWK

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

Semis/Circuits: Storage: IDTI, MU, VLTR, WFR, TQNT

Network Products: CSCO, BRCD, PLCM, FTR

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

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

Media: AOL, CVC, SIRI, PLA, VMED

Smaller Caps: BDE, ADPT, LNET, RTEC, ORCC, VTSSD

Sector News, M&A, Capital Raises

VMED Virgin Media hires UBS, Goldman to assist with sale of UKTV stake - London Times

AAPL TechCrunch says the iPhone/Verizon rumors may finally be true

HPQ Former Hewlett-Packard CEO Mark Hurd settles sexual harassment allegations against him -- AP

RST Rosetta Stone downgraded to market perform from outperform at William Blair

AAPL Apple executive Mark Papermaster leaves company after iPhone 4 troubles - NY Times

RIMM Research In Motion reaches preliminary deal with Saudi Arabia's telecom regulator and local phone operators. –Barron’s

A preliminary agreement between Saudi Arabia's telecom regulator and local phone operators has been reached regarding how BlackBerry data is handled, which will involve setting up a server in the kingdom, according to a person familiar with the talks. A formal deal is in the final stages of negotiations, according to an official at a Saudi-based telecom operator involved in the talks. A ban had been scheduled to take effect, starting 6-Aug, until Saudi Arabia's mobile-phone operators fulfill some regulatory requirements. – Barron’s

MSFT, INTC, ORCL, IBM, HPQ Streetwise discusses the reasons why large cap tech stocks MSFT, INTC, ORCL, IBM, and HPQ are cheap, noting that it may be that they're now viewed simply as large companies rather than tech companies. – Barron’s

LSCC Lattice Semiconductor announces resignation of CEO effective 4-Sep

Research Away

VECO downgraded to Hold from Buy at Canaccord, px tgt to $39 from $58

HPQ target lowered to $45 from $52 at Deutsche Bank

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