Morgan Stanley's Deep Impact By Gary Morrow About this article: Morgan Stanley's semi downgrade is pressuring the sector in a big way. The firm is now 'cautious' on the sector and believes that we are in the late innings of the semi cycle. Intel is the highest-profile stock included in the call and moves to "equal weight" from "overweight." The stock is off another 3% after gapping lower on the open and testing support now near its August lows. A handful of stocks, including ON Semiconductor , Nvidia , ARM Holdings , Novellus Systems and KLA-Tencor , received a bigger downgrade from Morgan. All five have been dropped from "equal weight" status to "underweight." All of the semi stocks mentioned are trading lower today, but Novellus is the most damaged of the bunch, with a 5.5% loss that has dropped the stock below its 50-day moving average. Novellus, similar to most of the semi sector, began... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

If you choose a 14-day free trial of RealMoney and you do NOT call to cancel within those 14 days, you will pay $129.95 — a $100 savings off the regular annual subscription price of $229.95. Unless you cancel before the end of that year, your subscription will automatically renew for another year at the then-current subscription price.

Offer applies only to new annual subscriptions, and is subject to change at any time. Void where prohibited.

If you choose a monthly subscription, you pay $34.95 per month. You will be notified if the current monthly rate of $34.95 changes at any time in the future.

TheStreet.com is a publisher. None of the contributors or their affiliates will provide you with personally tailored advice concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. From time to time, any or all of the contributors or their affiliates may hold positions in securities mentioned and they may trade for their own accounts. In cases where the position is held at the time of publication, appropriate disclosure is made.

© TheStreet.com, Inc., 14 Wall Street, 15th Floor, New York, NY 10005.