The equity market has recovered some ground since its tear into the red at the open this morning, but the major indices are still deep in the negative territory on the back of a massive selloff in

Intel

(INTC) - Get Report

. The chip maker warned of a revenue squeeze due to flagging European demand after yesterday's close.

Lately, Intel was down 20.5% to $48.88 on 200.64 million shares, putting 75 points of negative drag on the

Dow Jones Industrial Average. The index was far underwater, despite reasonable strength in a number of its components.

IBM

(IBM) - Get Report

and

Microsoft

(MSFT) - Get Report

were also adding considerable pressure to the Dow. IBM is down from yesterday's 4 p.m.

New York Stock Exchange close but up from composite trading, which ends at 4:30 p.m. EDT.

Hewlett-Packard

(HWP)

, which was earlier putting a dent in the Dow, was lately contributing a couple of points to the upside. The company's shares were xx% higher after the company approved a $1 billion share buyback plan and said it feels comfortable with fourth-quarter earnings estimates.

TheStreet.com

wrote a separate story about Hewlett-Packard today saying that it is comfortable with its

earnings outlook .

Investors are headed for the exits from most stocks. Breadth is absolutely terrible; there were 27 decliners for every 10 advancers on the

Nasdaq Stock Market, and 17 for every 10 on the New York Stock Exchange.

Despite earnings warnings from non-technology stocks due to weakness in the euro and weakness in European demand, the market was unprepared for Intel's warning. While the market was expecting weakness from some of the multinational retailers, Intel had given no sign that it was getting hurt by demand in Europe. 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 8.1%;

Applied Materials

(AMAT) - Get Report

lost 8.1%.

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)

. Other upsiders include

EMC

TheStreet Recommends

(EMC)

,

Texas Instruments

(TXN) - Get Report

and

America Online

(AOL)

.

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

All things PC-related were also getting pummeled by Intel's warnings, and the

Philadelphia Stock Exchange Computer Box Maker Index

was tanking xx%.

Investors were stashing cash in the pharmaceuticals and insurance stocks, as they looked for a safe haven away from the carnage in technology stocks. The

American Stock Exchange Pharmaceutical Index

was 2.8% higher.

Abbot Laboratories

(ABT) - Get Report

was 3.0% higher;

Merck

(MRK) - Get Report

was up 3.2% and

Eli Lilly

(LLY) - Get Report

was 3.8% 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 up 4/32 at 99 12/32, yielding 5.834%.

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