After-the-bell tech blues... AMD warns.........
AFTER HOURS
AMD crimps evening tech trading
By Shawn Langlois, CBS.MarketWatch.com
Last Update: 5:07 PM ET Oct. 2, 2002
SAN FRANCISCO (CBS.MW) -- Advanced Micro Devices issued a revenue warning that dealt technology
stocks a blow in the after-hours session Wednesday, adding to the woes in the bruised sector.
The Nasdaq-100 After Hours Indicator, a gauge of late trading in the Nasdaq's leading issues, moved fractionally
lower.
Earlier, major indexes gave back a sizeable chunk of Tuesday's frothy gains
as the Nasdaq ($COMPQ: news, chart, profile) dropped 26 points, or 2.2 percent, to close at 1,187 while the Dow
Jones Industrial Average ($DJ: news, chart, profile) lost 183 points, or 2.3 percent, at 7,756. See Market
Snapshot.
AMD warns
AMD (AMD: news, chart, profile) said its third-quarter sales would be about $500 million, or $100 million less than
expected, likely resulting in a "substantial" operating loss. Shares of AMD plunged 18 percent to $4.40 following
the announcement. In the regular session, the stock gained 10 cents to $5.37. See full story.
Reacting to the AMD news, shares of companies that make chip-manufacturing equipment slumped, with Applied
Materials (AMAT: news, chart, profile), Novellus (NVLS: news, chart, profile), and KLA-Tencor (KLAC: news,
chart, profile) all down about 2 percent on the Island evening actives list.
Tech spotlight
Dell Computer (DELL: news, chart, profile), a positive standout in the soggy regular session, closed up 68 cents
at $25.32 but then slipped after the closing bell. The PC giant told analysts that third-quarter revenue would
exceed its earlier targets while earnings-per-share should come in at the high end of its prior estimate. See full
story.
Most other tech blue-chips shares succumbed to the evening selling as well. Intel (INTC: news, chart, profile) and
Cisco (CSCO: news, chart, profile) topped Nasdaq most-actives with both stocks getting hit before and after the
bell -- Cisco taking the brunt, closing off nearly 8 percent at $10.05 before drifting slightly lower.
UBS Warburg lowered its fiscal 2002 and 2003 earnings targets on the networking king, citing recent weakness in
IT spending and continued channel checks suggesting Europe and Japan are weak.
Intel topped the late volume list, off almost 1 percent in the wake of rival AMD's warning.
Software stocks lingered in investor focus after the close with Microsoft (MSFT: news, chart, profile) shedding a
few pennies and BEA Systems (BEAS: news, chart, profile) and Oracle (ORCL: news, chart, profile) just barely
sneaking into the green.
Biotech blues
Shares of Transkaryotic Therapies (TKTX: news, chart, profile) lost nearly half their value late Wednesday after the
biotech firm said that it expects a regulatory decision on its treatment for a rare genetic illness, Fabry disease,
will be delayed into the first half of 2003. The company also said regulators had raised doubts about the way the
company collected data on how the drug relieved pain in patients with the disease.
Shawn Langlois is a reporter for CBS.MarketWatch.com, and the editor of its community message boards.
-
Also, Bloomberg link:
quote.bloomberg.com |
