After the bell, Intel (INTC) - Get Report warned that it would miss its third-quarter revenue numbers, due to weaker demand in Europe. The company expects revenue to be 3%-5% higher than second-quarter revenues of $8.3 billion.
Intel gets 27% of its revenues from Europe according to recent research by
Pitted firmly in negative territory, technology stocks -- yesterday's stars -- continued to lose ground this afternoon and ended broadly lower. Meantime, the blue chips -- which have recouped some of yesterday's losses -- were fighting to hold onto modest gains.
With no obvious trend and plenty of worries -- oil, the euro and corporate profits -- today's market was difficult for investors.
Resisting the downward pull, the
Dow Jones Industrial Average ended up on the day. Sinking deeper under water, the
Nasdaq Composite Index was also lower.
Giving strength to the blue-chips were shares of
, which was added almost 30 points to the Dow. This morning, 3M announced aggressive growth targets for the next three years and said it expects to make its second-half earnings goals.
Johnson & Johnson
each contributing to the Dow's positive side.
On the heels of Morgan Stanley Dean Witter's disappointing earnings report, the
American Stock Exchange Broker/Dealer Index
was down 3.3%, with Morgan Stanley off 6.8%.
In the technology arena, yesterday's news that
weren't going to make estimates have pushed their stocks down 3.7% and 10.2%, respectively.
But they weren't the only tech stocks dragging. Comp heavyweights
were all on the downside. Also, a
Credit Suisse First Boston
downgrade to buy from strong buy was keeping
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Addressing members of the House Government Reform committee, U.S. Energy Secretary Bill Richardson said this afternoon that the U.S. will urge OPEC to consider increasing production. On the heels of that announcement, oil stocks were taking a breather, with the
Philadelphia Stock Exchange Oil Service Index
down 1.6% and the
American Stock Exchange Oil & Gas Index
Philadelphia Stock Exchange Semiconductor Index
was sinking 4.1%. Nearly every component was down, but
was the biggest loser in the sector. It was down 16.8% after
cut the stock's price target to $65 from $94 and said the company's third-quarter orders could fall short of forecasts.
American Stock Exchange Airline Index
was off 2.4%.
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Bonds were posting modest gains on little news. Oil, which has been the main influence on bond prices in the last several sessions, was sharply weaker.
Alan Greenspan did not address the economy or monetary policy, and the only major economic report, the
Philadelphia Fed Index
) for September, was more or less in line with expectations. It fell to 8.2 in September from 14.1 in August, indicating slower growth in the manufacturing sector.
Also, the Treasury Department conducted its latest
buyback, targeting $1.5 billion of 30-year bonds issued between 1987 and 1991.
The benchmark 10-year Treasury note lately was down 1/32 at 99 2/32, yielding 5.884%.
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