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RealTime IT News

Intel Warning Sinks Nasdaq

The tech-heavy Nasdaq took a pounding in morning and early-afternoon trading Friday following chipmaker Intel Corp.'s midquarter warning that Q3 revenues would fall short of previous estimates.

After falling as low as 1841 by late morning, the Nasdaq recovered slightly by early afternoon to 1844, down 29 points, or 1.6%, from Thursday's close.

Shares of Intel plunged below $20 per share in morning trading to $19.85, recovering slightly to $20.01 by 1 p.m., a drop of 7.5% from Thursday's final number.

The chipmaker on Thursday cut its revenue estimate for the third quarter to between $8.3 billion and $8.6 billion from earlier forecasts of $8.6 billion to $9.2 billion.

The Dow Jones was faring better, bouncing between red and black through midday. By 1 p.m., the Dow was down 7.7 points, or 0.1%, to 10283. A relatively promising jobs report showing 144,000 new jobs created in August may have kept the Dow from joining the Nasdaq in its southward descent.

The S&P 500 was at 1117 by 1 p.m., a slight decline of 1.8 points, or 0.2%.

News that former President Clinton may have suffered a heart attack on Friday also could impact the markets through the rest of the trading day.