<FONT COLOR=BLUE>MARKET SNAPSHOT--Shares to nosedive as Intel warns
Chip behemoth warns of slower sales
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 8:31 AM ET Sep 22, 2000
NEW YORK (CBS.MW) – The ripple effects of Intel’s sales warning are being felt in markets across the globe. In the U.S., shares are poised for a nosedive at the open.
Bellwether Intel announced late Thursday that its third-quarter revenue will fall below its previous expectations due to waning demand in Europe. Intel (INTC) tumbled $11.98, or 19 percent, to $49.50 in Instinet.
Among other chip stocks getting hurt, Advanced Micro Devices (AMD) dropped $2.93 below Thursday's official NYSE close to $24.63, Micron Technology (MU) dropped $7 below its NYSE close to $55.50.
December S&P 500 futures dropped 25.10 points, or 1.3 percent, pointing to a sharply lower open for shares. Nasdaq futures, meanwhile, tumbled 92.00 points, or 2.4 percent.
The beleaguered euro has been cited time and time again during the current pre-announcement season as reason for profit shortfalls. In an attempt to avert further negative repercussions on the global economy due to the euro’s drop, the Federal Reserve, the European Central Bank and Bank of Japan staged a concerted intervention Friday to prop up the euro, propelling the fledgling currency up 3.2 percent against the dollar at 0.8883. Euro/dollar fell as low as 0.8440 on Wednesday.
Julie Rannazzisi is markets editor for CBS.MarketWatch.com. |
