Cantor Morning News | Tech/Media/Telco

Stocks finished lower for the third straight session yesterday. Tech underperformed again with CSCO’s earnings and cautious guidance being the catalyst behind px action. Some names with high exposure to CSCO (CAVM -10.5% & NETL -9%) suffered heavy declines while others (ALTR -6% & XLNX -5%) were hurt by sell-side downgrades.

After the close NVDA reported quarterly results that were inline with company’s guidance but missed the Street consensus. Recall that on July 28 NVDA reduced its guidance, as a result stock declined over 12%.

July video game sales were off 1% y/y, according to new data from NPDS Group. This time software sales declined 8% y/y while Hardware sales were up 12% y/y.

ORCL sues GOOG, alleging that Android software infringes 7 Java patents. Recall that GOOG CEO Eric Schmidt was once a CTO at Sun Microsystems.

Macro/Technicals

S&P : 1075.8; -.32%
SOX: 325.75; -1.31%
VIX: 25.75; +1.34%

Active Names

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

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

Semis/Circuits: Storage: IDTI, MU, VLTR, WFR, SYNA, TTMI

Network Products: CSCO, BRCD, PLCM, FTR

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

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

Media: AOL, CVC, SIRI, PLA, VMED

Smaller Caps: BDE, ADPT, LNET, ETM, CRNT, VTSS, QTM

Sector News, M&A, Capital Raises

GOOG Google, Skype next in line for Indian authorities - FT

GOOG Google says California made it impossible for company to bid for $60M email contract - LA Times

Subscription-TV providers building tablet-computer apps to provide mobile access for subscribers - WSJ
RIMM Research In Motion to give India access to BlackBerry messenger services - Money Control

AVGO Avago announces 14.9M share secondary for holders. Recall the company withdrew a 24.8M share secondary yesterday.
FLEX Flextronics announces new board authorization for an additional $200M share repurchase

Research Away

VECO mentioned positively at UBS

NVDA upgraded to equal-weight from underweight at Morgan Stanley

KLAC upgraded to Equal Weight from Underweight at Morgan Stanley

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