Novellus Systems (NVLS) raised its fourth-quarter revenue and earnings outlook, as a result of the ongoing recovery in the semiconductor market.   The company now expects revenues of $225-245 million, compared to previous guidance of $215-245 million, which raises the mid-point from $230 to $235 million.   Management had previously guided to bookings increase of 25-50%, which were not subsequently revised. Therefore, we assume that bookings are expected to remain within this range.   GAAP gross margin expectations were also not revised and remain in the 44-47% range.   EPS expectations were raised to 25-40 cents from previous guidance of 20-40 cents. The Zacks Consensus Estimate for the fourth quarter is pegged at 31 cents, close to the middle of the revised range.   The company’s third-quarter earnings beat the Zacks Consensus Estimate by a penny. Order momentum, stronger DRAM and NAND prices, higher volumes, higher utilization rates ...

Applied Materials’ (AMAT) fourth quarter earnings beat the Zacks Consensus Estimate by 12 cents. Revenue beat the consensus by 15.6%. All the peer companies -- ASML Holdings (ASML), KLA Tencor (KLAC) and Lam Research (LRCX) -- reported results that also beat the consensus. The general improvement in results is proof of the growing momentum in the semiconductor capital equipment market. Revenue Revenue of $1.53 billion was up 34.6% sequentially and down 25.3% year over year. The year-over-year decline in revenue moderated with respect to the three preceding quarters. Revenue by Segment All segments contributed to the sequential increase, as well as the year over year decline in revenue. Silicon Systems (SSG) remains the largest segment, with a 43% revenue revenue share. Segment revenue increased 31.7% sequentially and declined 11.8% year over year. Capacity expansion and technology transitions at foundry customers ...

U.S. stocks rose for a fifth day on Thursday as a larger than expected drop in U.S. jobless claims and an upbeat forecast from consumer goods maker Procter & Gamble added to enthusiasm that the economy is on track for a rebound.  Energy shares advanced, helped by rising forecasts for oil demand.  Nevertheless, given September’s weak track record, market participants have been bracing for a pullback.

On Thursday, the Dow Jones industrial average rose 80.26 points, or 0.8%, to 9,627.48, its highest close since October 6.  The broader S&P 500 index advanced 10.77 points, or 1%, to 1,044.14, its first five-day climb since November.  The Nasdaq composite index rose 23.63 points, or 1.2%, to 2,084.02.  With traders eschewing safe havens, yield on the benchmark 10-year Treasury note fell to 3.35%. The yield on the 30-year notes declined to 4.20%.

As the holiday-shortened week comes to an end today, investors

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