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
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
, 2.7% lower, and hardware-maker
, down 9.2%, were the Nasdaq's most actives. Semiconductor
was also off 2.8%. It was downgraded to outperform from buy by
Salomon Smith Barney
was 3.2% lower.
was up 0.6%.
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
, 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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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
Royal Dutch Petroleum
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.
was 2.9% higher;
was up 2.7% and
was 2.3% 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 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.
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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