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That $13.4 billion stock swap has stoked expectations of more combinations in the telecommunications equipment sector.
"The equipment sector is not going to see improvement until we see increased demand for chips," he said.
When orders for the transportation equipment sector were stripped out, the gain in durable goods orders was only 0.1percentt.
In addition, Lehman Brothers cautioned investors against betting on a swift upturn in the computer-chip equipment sector.
The limited development of heavier industry, such as the metalworking and railway equipment sector, was linked to trade, service, and transportation agreements with neighbouring countries.
On Friday morning, two hours before the market opened, James Covello, the semiconductor analyst at Goldman, upgraded the semiconductor equipment sector to overweight from market weight.
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U.S. Steel reported its earnings amid an industrywide slump in demand for the metal among major buyers in the automotive, construction and industrial equipment sectors.
The bright spots were the food and drink industries – which, the EEF said, are benefiting from an easing in the supermarket price war – along with the chemicals and electrical equipment sectors.
The State Council, China's cabinet, recently singled out the iron and steel, cement, electrolytic aluminum, glass, coal, chemical, polysilicon and wind power equipment sectors as the worst offenders when it came to overcapacity and announced steps to rein in their expansion.
The semiconductor and communications equipment sectors will see their earnings grow 28% year-over-year, while the software sector will chip in with 20% growth.
Arrow benefited from the tight supply of components, which plagued the semiconductors and electronics equipment sectors through most of last year, and from large acquisitions made over the last two years.
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