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• Hewlett Packard (NYSE:HPQ) reported strong results after Monday's close, helped by robust sales in China and improved margins on its service operations.  The firm also increased share repurchases to $12 billion and projected fiscal 2010 earnings of $4.25 to $4.35 a share on revenues of $118 billion to $119 billion, inline with its earnings' preannouncement two weeks earlier

• Semiconductor HOLDRs (NYSE: SMH) up $0.19, about 0.75%, to $25.54. Semis are up after Analog Devices (NYSE: ADI) reported earnings and revenues above Street estimates.

National Semiconductor (NSM) shares are trading higher this morning after the stock was added to Citigroup’s Top Picks Live list. Analyst Terrence Whalen has a price target on the stock of $20, well ahead of yesterday’s close at $13.81.

Whalen writes that downside appears limited, given higher exposure to the industrial segment and improving handset activity. He asserts that at 10x calendar 2010 free cash flow, the stock appears “mispriced” ahead of the company’s financial results, which are due December 10.

Analog Devices (ADI) this afternoon posted better-than-expected results for its fiscal first quarter ended October 31.

For the quarter, revenue was $572 million, down 13% from a year ago, but up 16% sequentially, and ahead of the Street at $523.8 million. EPS of 36 cents beat the Street by a dime.

For FY Q1 ending in January, the analog chip company sees revenues sequentially flat, which would be above the Street at $532.5 million. ADI sees EPS for the quarter of 36-37 cents, ahead of the Street consensus at 28 cents.