The equity market is rebounding from the day's lows, although the major indices are still mired deeply in the red on the back of a massive selloff in
. The chip maker warned of a revenue squeeze after yesterday's close.
Lately, Intel was down 21% to $48.63 on 42 million shares, putting 76 points of negative drag on the
Dow Jones Industrial Average. The index was far underwater, despite reasonable strength in a number of its components.
were also adding considerable pressure to the Dow. Those stocks are down from yesterday's 4 p.m.
New York Stock Exchange close, but they're up from composite trading, which ends at 4:30 p.m. EDT.
wrote a separate story about Hewlett-Packard saying today that it is comfortable with its
earnings outlook .
Investors are headed for the exits from most stocks. Breadth is absolutely terrible; declining stocks outnumber advancing stocks 27 to 8 on the
Nasdaq Stock Market, and 15 to 9 on the New York Stock Exchange.
After several earnings warnings from non-technology stocks due to weakness in the euro and weakness in European demand, the market was surprised to hear of Intel's earnings warning for the same reason. Analysts have responded forcefully this morning, with many downgrading the company or cutting earnings estimates on the chip maker. A number of other semiconductor stocks have been cut by analysts today, and lately the
Philadelphia Stock Exchange Semiconductor Index
was off 6.5%;
In addition, a number of companies, including
, issued statements this morning maintaining that they are comfortable with earnings estimates. Compaq said it was comfortable its own exposure to the continent will not damage its earnings.
Philadelphia Stock Exchange Computer Box Maker Index
was lately down 4.6%.
On the upside, parts of the Nasdaq have busted into positive territory, including some momentum stocks like
The dollar is slipping today, after the
European Central Bank
, along with the U.S. and Japan,
intervened to support the euro this morning.
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Pharmaceuticals were substantially stronger, as investors looked for a safe haven for their cash, and the
American Stock Exchange Pharmaceutical Index
was 2.2% higher.
was 2.7% higher;
was up 2.9% and
was 3% higher.
Insurance stocks were also getting a boost, with the
S&P 500 Insurance Index
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This morning's coordinated intervention by Europe, the U.S. and Japan to halt the euro's slide gave a lift to European government bond prices, and Treasuries rose in tandem. Lately, however, the Treasury market has retreated.
The 10-year note was lately unchanged at 99 7/32, yielding 5.852%.
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