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To: SusieQ1065 who wrote (14629)	9/6/2001 9:57:06 PM
From: SusieQ1065	Respond to of 208838

Intel (INTC) 26.10 -1.37: Traders looking for some direction from Intel as a catalyst for the market either up or down were disappointed as the much anticipated mid-quarter update from Intel after the bell today was about as expected. The world's largest chip manufacturer said it expects Q3 sales to be slightly below the midpoint of the range provided on July 17 which was $6.2-$6.8 bln. That the company would reiterate guidance is not surprising given the Mack truck-sized hole it left for itself. Gross margin is expected to be below the midpoint of the range from earlier guidance. The stock is trading up fractionally on high volume after the close as a number of analysts had guided down to the low end of the range on sales. The conference call added little to the press release from an hour earlier. The chip equipment makers should be pleased that Intel maintained its cap-ex budget of $7.5 bln for 2001. However, it's not all that surprising considering how late in the year it is now. Briefing.com is a bit concerned that no guidance for 2002 will be provided until January so that creates a bit of uncertainty for that space....The Semi Index (SOX 511.55 -23.01) has slumped 16% since its high on Aug 27 on a steady stream of bearish events. Earlier, this week, the Semiconductor Industry Association said that the 3-month rolling average billings for July fell 37.2% yr/yr vs a 30.9% yr/yr decrease in June. Also, AMD (AMD 11.40 -0.65) recently said that Q3 sales would decline 15% sequentially and Texas Instruments (TXN 29.50 -1.34) echoed that forecast with a 10%-15% sequential decline of its own. Even though both were roughly in-line with forecasts, the sentiment has hurt the group....Bottom line: Nothing from Intel's update changes our thesis of staying away from Intel and other chipmakers. Intel's price war with AMD will kick into high gear for the rest of the year. As for the market overall, the early indications are that this is a mild positive for the market. -- Robert J. Reid, Briefing.com