Updated from 8:49 a.m.

Applied Materials

(AMAT) - Get Report

was up 0.6% in early trading despite reporting second-quarter earnings of 32 cents per share late Tuesday, just below the

Thomson Financial/First Call

consensus of 33 cents and down sharply from the year-ago 53 cents.

The semiconductor equipment maker warned the third-quarter EPS would be "break-even or slightly above" as the slump in demand continued.

J.P. Morgan

today slashed 2001 EPS estimates to 41 from $1.38.

Goldman Sachs

cut its 2001 estimates to $1.04 a share from $1.56.