STOCKWATCH U.S. chip equipment stocks downgraded at Tucker Anthony

SAN FRANCISCO (AFX) - A number of U.S. chip equipment stocks, including Applied Materials Inc and Novellus Systems Inc were downgraded by Tucker Anthony Sutro analysts, who said their valuation model "points to significantly lower share prices for industry leaders as revenues (and) margins are expected to decline for several quarters."	    At 2.13 pm in New York trade, Applied Materials shares fell 4.46 pct or 2.44 usd to 52.25, Novellus lost 4.32 usd or 7.79 pct to 51.17 and KLA-Tencor slipped 3.79 usd or 7.02 pct to 50.20. The Philadelphia semiconductor (Sox) index 28.86 pts or 4.30 pct to 641.79 and the Nasdaq composite slipped 78.63 pts or 3.54 pct to 2,141.97.	    "We would continue underweighting the group as the business cycle looks more like 1984-85 than the brief dips of 1996 and 1998," the analysts said.	    They downgraded to 'market underperform' from 'market perform' Applied Materials, Novellus, Lam Research Corp and Asyst Technologies Inc.	    KLA-Tencor was maintained at 'market perform' as was ADE Corp and Veeco Instruments Inc. They reiterated a 'buy' rating on Trikon Technologies Inc.	    The analysts cut Nanometrics Inc to 'market perform' from 'buy'. 

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