The semiconductor sector seems to be dominating the spotlight recently. This morning, Lehman Brothers upgraded the European semiconductor and equipment sector to positive from neutral, based on expectations of a strengthening recovery. The company boosted its rating on Infineon Technologies to overweight from equal weight. On the other hand, the firm trimmed its rating on STMicroelectronics to underweight from overweight. Lehman said it expects IFX to achieve further market share gains in the wireless sector as it also reduces its exposure to the weak DRAM market. STM's near-term outlook should improve slightly along with the wider market, but Lehman said its lower growth and fewer catalysts for change mean there's more potential upside at IFX.

Recently in the news,

>Texas Instrument narrowed its revenue guidance, while

>Western Digital and

>Intel boosted their respective earnings outlooks. Elsewhere,

>Advanced Micro Devices launched its new quad-core processor for the high-end server market.

Technically speaking, the Semiconductor HOLDRS Trust has recently pulled back to support at its 20-day moving average after being rejected by resistance at the 39 level. However, the exchange-traded fund has slipped below support at its 10-week and 20-week moving averages.