stan: Is this the "general semi downgrade"? Seems less than that. M2
Semiconductor stocks slouch
By Janet Haney, CBS.MarketWatch.com
Last Update: 10:54 AM ET Oct 5, 2000 NewsWatch
Latest headlines
NEW YORK (CBS.MW) -- Semiconductor shares were spooked Thursday by a cautious sales outlook from a major tech player, while one analyst called the upcoming earnings season "sloppy."
"We think it's going to be a sloppy earnings season for the semiconductor business," wrote Merrill Lynch analyst Joe Osha in a research note. "Although we expect few outright misses, problems in both the PC and wireless end markets should limit Q3 upside in many cases, and should also contribute to a cautionary outlook going into the fourth quarter."
Lending to his theory and putting pressure on the overall hardware sector is an earnings warning from Dell Computer. (DELL: news, msgs). See full story.
Dell said sluggish demand in Europe hampered its sales outlook for the third quarter. The news comes shortly after Intel (INTC: news, msgs) revealed that slower-than-expected demand in Europe would hurt its quarterly revenue. Likewise, Apple Computer (AAPL: news, msgs) also said waning sales have affected sales.
The Philadelphia Semiconductor Index ($SOX: news, msgs), which tracks chip and chip equipment stocks, dropped 2.6 percent to 840.98.
In recent trading, Intel stock was flat at $42. Meanwhile, Micron Technology (MU: news, msgs) shares lost $1.25 to $45.69 a day after it released its fourth-quarter results, citing an increase in sales as well as prices for its products. See full story.
The next semiconductor company to report its quarterly earnings is Motorola (MOT: news, msgs). The tech giant will announce its third-quarter results Oct. 10. Its shares dipped 25 cents to $29.50 |
