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

Intel

(INTC) - Get Report

. 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.

Hewlett-Packard

(HWP)

and

IBM

(IBM) - Get Report

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.

TheStreet.com

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%;

Applied Materials

(AMAT) - Get Report

lost 7%.

In addition, a number of companies, including

Hewlett-Packard and

Compaq

(CPQ)

, 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.

The

Philadelphia Stock Exchange Computer Box Maker Index

TheStreet Recommends

was lately down 4.6%.

On the upside, parts of the Nasdaq have busted into positive territory, including some momentum stocks like

Corning

(GLW) - Get Report

and

JDS Uniphase

(JDSU)

.

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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Sector Watch

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.

Abbot Laboratories

(ABT) - Get Report

was 2.7% higher;

Merck

(MRK) - Get Report

was up 2.9% and

Eli Lilly

(LLY) - Get Report

was 3% higher.

Insurance stocks were also getting a boost, with the

S&P 500 Insurance Index

up 2.4%.

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Bonds/Economy

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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