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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (49631)	3/5/1998 7:51:00 AM
From: Ibexx	Read Replies (2) \| Respond to of 186894

Michelle and thread, U.S stocks in London fall on Intel warning LONDON, March 5 (Reuters) - U.S. stocks in London fell across the board on Thursday following an earnings warning on Wednesday from semi-conductor giant Intel Corp INTC.O. Intel shares dropped $10-5/16 to $75-1/8 by 1055 GMT, Compaq Computer Corp CPQ.N slid $1-1/2 to $28. "All stocks are indicated down on the back of the Intel statement," said one dealer. Intel Corp said its first quarter net income and revenues will be below expectations due to weaker-than-anticipated demand from personal computer makers. The company said it now expected its first quarter revenues to be about 10 percent below fourth quarter revenues of $6.5 billion and gross profit margins in the range of 53 percent of revenues. Dealers said the warning, which came after the market closed in New York on Wednesday, could spark some selling of technology stocks when trading begins on Wall Street on Thursday. They said the broader market was also likely to suffer and the Dow was seen tumbling around 90 to 100 points at its open. The March S&P future was trading at 1,037.7, some 11 points below its estimated fair value. The Intel news sparked a rout in stock markets across Asia and Europe. Hong Kong dropped nearly five percent, Tokyo fell 1.45 percent, Frankfurt shed 1.6 percent and London slid 1.7 percent. However, some dealers believed the negative impact of the Intel news could be short lived. They argued the market could pare losses if technology analysts in New York made conciliatory remarks on Intel stock and the technology sector. "It could be an over reaction because while the news is not good, it was not wholly unexpected," said one dealer. "The direction of the market will depend a lot on how analysts view Intel. If a lot the respected research analysts stay with the stock, the market could stabilise." But some dealers said the Intel warning would heighten investor nervousness, particularly ahead of the much-awaited non-farm payroll figures due on Friday. They said there were concerns that while the market continued to trade near its all-time high, there was a recent trend among analysts to revise earnings forecasts downwards. "The market is at very lofty levels and if there is a concern about earnings, we may have to give some of these gains back," said a dealer. "Investors have been looking for an excuse to take profits and we have certainly got one today." U.S. economic data due on Thursday included weekly jobless claims. The consensus estimate for the week to February 28 was 316,000, while factory orders in January were expected to show a rise of 0.4 percent. REUTERS Rtr 07:02 03-05-98