Intel's Bombshell: TSC Coverage
European Early Update: One Word -- Intel
Asian Markets Update: Intel Whacks Asian Tech Shares
Wall Street Gets Soaked by Intel's Surprise
Spread the Word: Tech Companies Plenty Exposed Over There
More Than 1,000 Funds Get Clocked by Intel Warning
Intel's Warning Wreaking Havoc in After-Hours Action
The market's express elevator to hell is being operated by
In preopen trading, Intel was traded at $47.75, down $13.73 from the previous day's close of $61.48 on 2.1 million shares traded, after the company issued a third quarter earnings warning. The chipmaker said revenues would rise 3% to 5% from the second quarter revenue figure of $8.3 billion. Profit margins were expected to be about 62%, rather than the 63% to 64% originally expected.
The warning took just about everybody by
surprise, as very few analysts had any notion that Intel, one of the market's bellwethers, would issue an earnings warning. Those analysts have awakened this morning, and the company has (surprise!) been hit with several downgrades.
It's expected to absolutely destroy the
Nasdaq Composite Index
Dow Jones Industrial Average (Intel is a Dow component), and the rest of the market this morning. The Nasdaq futures were lately trading at limit down, down 92 points to 3673, approximately 102 points below fair value. Limit down is the point at which futures trading is stopped because an index's loss has reached a predetermined threshold. The
futures were lately down 20.20 at 1449.30, about 18 points below fair value, indicating a crushing open.
The warning by Intel is a reminder of just how
exposed technology companies are to the international markets. Despite the fact that many high-tech companies, like
, do business in dollars, the strength of the dollar against the consistently sagging euro may inhibit Europeans from buying products. This morning the
European Central Bank
, after weeks of dithering, finally intervened to support the euro, along with U.S. and Japanese monetary authorities. The euro was lately traded at $0.8882, up from yesterday's close at $0.8614.
In preopen trading, other tech stocks were being hammered. Cisco was lately traded at $57.25, down from its Thursday close at $61.13; JDS Uniphase was traded at $98, down from the $103.50 close, and
lately traded at $34.25, down from $37.94. All quotes are according to
For Thursday's postclose trading, see The Night Watch.