• Visa (NYSE:V) reported earnings of 74 cents a share, 3 cents above Zacks estimates on revenues of $1.9 billion above estimates of $1.8 billion. The company expects 2010 revenue growth at the lower end of its 11-15% range, but 2011 growth above 20%

• International Paper (NYSE:IP) reported third quarter results of 37 cents a share, 14 cents above Zacks estimates, on inline revenues of $5.92 billion, off 13.1%. According to the company, at the end of its third quarter, "we began to see some modest improvements in demand in some segments of our paper and packaging businesses"

• Yahoo's (NASDAQ:YHOO) analyst meeting is due to be held at 11:00 ET

• Arcelor Mittal (NYSE:MT), the world's largest steel company, reported a $903 million third quarter profit, noting "We have seen the first signs of recovery in the third quarter...We should continue to see further gradual improvement through 2010, although the operating

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While the recession could certainly be blamed for much of the current softness, it does not adequately explain the state of semiconductor manufacturing today.

Since the bursting of the tech bubble in the late 1990s, semiconductor companies have improved inventory management, streamlined operations and transferred manufacturing to cheaper locations. This enabled a stronger focus on research, helping differentiation and consequently profit margins.

Although companies like Intel (INTC), STMicroelectronics (STM), Texas Instruments (TXN) and National Semiconductor (NSM) continue to operate their own facilities, many smaller players, such as Intersil Corp. (ISIL) and Semtech Corp. (SMTC) decided to take the outsourcing route.

This was a boon for Asian manufacturers, especially Taiwan Semiconductor Manufacturing Co. (TSM) and United Microelectronics (UMC), which were the first to capitalize on the opportunity. Chartered Semiconductor (CHRT) and Semiconductor Manufacturing International (SMI) joined later, but continued to

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