Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube

  Semiconductor sales can be a good barometer for the Tech sector
Posted Under: Sectors


View from the Observation Deck

  1. The 2012 earnings growth estimate for the S&P 500 Information Technology Index is currently 14.6% (highest of 10 major sectors), compared to 8.9% for the broader S&P 500, according to Standard & Poor's. 
  2. From 12/01-12/11, the S&P 500 Information Technology Index posted a cumulative total return of 25.0%, compared to 33.3% for the S&P 500. The Philadelphia Semiconductor Index declined by 24.0% over that 10-year span.
  3. Semiconductors play an integral role in most tech-oriented products, especially mobile devices like smartphones and tablets.
  4. As the yellow line in the chart illustrates, semiconductor sales leveled off some in the second half of 2011 after rising to record levels during the past decade.  The sharp decline in 2008 stemmed from the global credit crisis.
  5. Concerns about the potential economic fallout from the sovereign debt crisis in the European Union and supply chain disruptions from the floods in Thailand likely held back sales in 2011.      
  6. The World Semiconductor Trade Statistics (WSTS) organization estimates that global semiconductor sales will total a record $302 billion in 2011. That is a 1.3% increase from 2010's record sales, according to the Semiconductor Industry Association.
  7. The WSTS is forecasting 3.7% sales growth for 2012 and 5.8% for 2013.

Posted on Thursday, February 2, 2012 @ 3:50 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

US Economy and Credit Markets Week Ended January 27, 2012
US Stocks Week Ended January 27, 2012
Large-Caps are not expensive on an historical basis
Globalization is Not Dead
Biotechnology May Be the Best Remedy for an Ailing Health Care System
US Economy and Credit Markets Week Ended January 20, 2012
US Stocks Week Ended January 20, 2012
S&P 500 Earnings Yield indicates that Large-Caps are Undervalued
Putting Capital to Work
Municipal Bond Closed-End Funds Staged Quite a Comeback
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2021 All rights reserved.