Market Update: Nasdaq Off Lows, But Still Whupped by Intel Woes - TheStreet

Intel

(INTC) - Get Report

was a red-hot poker for this morning's market, setting the major indices on fire.

After the semiconductor mammoth and

Dow Jones Industrial Average component announced after the close last night that its third-quarter revenue would fall below estimates, the tech-heavy

Nasdaq Composite Index seared into the red after the open. It had lately recovered some ground.

The Dow was off, with Intel burning an 81 point hole in the average. Intel was off 22.4% to $47.75. The

S&P 500, the

Russell 2000

and

TheStreet.com Internet Sector

index were all lower.

Intel's malaise was spreading far and wide among the tech bellwethers. Intel was trading down on gargantuan volume. Computer-networking giant

Cisco

(CSCO) - Get Report

, 2.7% lower, and hardware-maker

Dell

(DELL) - Get Report

, down 9.2%, were the Nasdaq's most actives. Semiconductor

Micron Technology

(MU) - Get Report

was also off 2.8%. It was downgraded to outperform from buy by

Salomon Smith Barney

.

Microsoft

(MSFT) - Get Report

was 3.2% lower.

IBM

(IBM) - Get Report

was up 0.6%.

Hewlett-Packard

(HWP)

was 3.4% higher after the company approved a $1 billion share buyback plan and said it feels comfortable with fourth quarter earnings estimates.

Also trading higher was

Coca-Cola

(KO) - Get Report

, which was lately up 3.5% and adding 11 points of upside to the index. The Dow is calculated based on how stocks close on the

New York Stock Exchange. Prices are typically quoted based on how they close in composite trading.

In the mean time, natural gas and oil stocks, pharmaceuticals and insurance stocks were some of the only bright spots in early trading.

But some observers think the bad news is really Intel-specific -- that once the initial scare wears off, investors will rush in to snatch up what look like some pretty good buys.

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Sector Watch

Intel was blasting the semiconductors, and the

Philadelphia Stock Exchange Semiconductor Index

was down 8.9%. Ouch.

Oil stocks were edging higher, with the

American Stock Exchange Oil & Gas Index

up 0.3%.

Royal Dutch Petroleum

(RD)

was up 2.1%.

Pharmaceuticals were substantially stronger, as investors looked for a safe haven for their cash, and the

American Stock Exchange Pharmaceutical Index

was 1.8% higher.

Abbot Laboratories

(ABT) - Get Report

was 2.9% higher;

Merck

(MRK) - Get Report

was up 2.7% and

Eli Lilly

(LLY) - Get Report

was 2.3% higher.

Insurance stocks were also getting a boost, with the

S&P 500 Insurance Index

up 1.9%.

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Bonds/Economy

This morning's coordinated intervention by Europe, the U.S. and Japan to halt the euro's slide has given a lift to European government bond prices, and Treasuries are rising in tandem. Early extreme weakness in stock index futures is also benefiting the bond market.

TheStreet.com

wrote a separate story on the efforts to

boost the euro.

The 10-year Treasury note was lately up 4/32 at 99 12/32 and yielding 5.833%.

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