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From Briefing.com: 4:10PM PMC-Sierra lowers Q3 guidance below consensus (PMCS) 7.78 +0.01 : Co expects its net revenues in Q3 ending September 26, 2010, to be in the range of $161-163 mln vs consensus of $173.36 mln. Co's previous outlook for third quarter net revenues announced during the July 22, 2010 earnings conference call was a revenue range of $169-177 mln. Co expects its gross margins in Q3 of 2010 to be at the lower end of the outlook range provided of 67.5-68.5% vs consensus of 68%. Operating expenses in Q3 of 2010 are expected to be in the range of $64-65 mln, down from the prior outlook range of $66-67 mln.

4:07PM Adobe Systems beats by $0.05, reports revs in-line; guides Q4 EPS in-line, revs below consensus (ADBE) 32.94 -0.16 : Reports Q3 (Aug) earnings of $0.54 per share, $0.05 better than the Thomson Reuters consensus of $0.49; revenues rose 42.0% year/year to $990.3 mln vs the $985 mln consensus. Co issues mixed guidance for Q4, sees EPS of $0.48-0.54 vs. $0.53 Thomson Reuters consensus; sees Q4 revs of $0.950-1.000 bln vs. $1.03 bln Thomson Reuters consensus.

5:40PM Adobe Systems is trading 15.8% to $27.73 following its earnings/guidance results (ADBE) 32.94 -0.17 :

4:05PM Tessera Tech announces Fujitsu renews technology licensing agreement with Tessera (TSRA) 16.97 +0.02 : Under the agreement, which was renewed in accordance with its original terms, Fujitsu is licensed to Tessera's semiconductor packaging technology covering a broad range of chip scale and multi chip package types.

4:30 pm : Stocks shook off a listless start to extend their four-month highs, but they failed to sustain gains in the face of resistance. Not even a pledge of support from the FOMC and better-than-expected housing start and building permit data could prop up the major averages.

Trade started on a rather dull note as the major averages made a modest slip in the opening minutes. Losses were generally contained as the S&P 500 was supported at the 1136 to 1138 zone.

Action was also constricted by caution ahead of the latest FOMC policy statement, but the major averages made some sharp swings with the release of the statement. To no surprise, the target interest rate was left unchanged at the range 0.00% to 0.25%. Consistent with past statements, the Fed stated that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period. However, the statement went on to indicate that the Fed is prepared to provide additional accommodation if needed.

Though no specific measures were stated, the Fed's expression of support attracted enough buyers to drive the S&P 500 to its best level since May. However, buyers backed away as the benchmark index lost momentum near the 1150 line.

Treasuries also swung higher with the release of the policy statement, but they maintained their gains into the close. The benchmark 10-year Note netted a full point and saw its yield drop back below the 2.60% level for the first time in about 10 days.

The dollar was dropped for a 1.0% loss. It had already been down before the FOMC made its announcement because of a stronger euro following a series of successful sovereign debt offerings from Ireland, Greece and Spain.

Better-than-expected housing starts and building permits during August were overshadowed by the FOMC announcement, though construction materials plays (+3.1%) benefited from the data. Housing starts climbed 10.5% month-over-month to an annualized rate of 598,000, and building permits increased 1.8% month-over-month to an annualized rate of 569,000.

Financials comprised the worst performing sector of the session. The sector's 1.0% loss ate into its 2.0% gain from the prior session.

In contrast, airline stocks were strong. An increased profitability forecast for 2010 from The International Air Transport Association sent the Amex Airline Index up 1.9% to its best level in almost three years.

Advancing Sectors: Telecom (+0.3%), Industrials (+0.2%), Health Care (+0.1%)
Declining Sectors: Financials (-1.0%), Utilities (-0.5%), Consumer Discretionary (-0.4%), Materials (-0.4%), Energy (-0.1%), Tech (-0.1%), Consumer Staples (-0.1%)DJ30 +7.41 NASDAQ -6.48 NQ100 +0.00% R2K -0.8% SP400 -0.6% SP500 -2.93 NASDAQ Adv/Vol/Dec 983/2.14 bln/1636 NYSE Adv/Vol/Dec 1063/1.05 bln/1900

09:54 am SWKS Guides Q4 Above Consensus (SWKS)

Skyworks (SWKS 19.61 -0.18) guides its fourth quarter earnings at $0.40 per share, better than the $0.37 Thomson Reuters consensus.

On the top line, the company guided revenues at $310 million, above the $301.26 million Thomson Reuters consensus.

07:45 am Kopin upgraded to Buy at Wunderlich; tgt raised to $4.50: . Wunderlich upgrades KOPN to Buy from Hold and raises their tgt to $4.50 from $4 based on higher expectations for market share in the III-V segment as capacity enhancements come online in late 2011 and beyond.

07:28 am SanDisk downgraded to Neutral at Sterne Agee: . Sterne Agee downgrades SNDK to Neutral from Buy saying they believe peaking consumer builds into October and slowing share gains with improving NAND supply could cap NAND upside.