TI Lowers Its Outlook
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Investors got fresh evidence Monday that a U.S. economic slowdown is hurting technology spending.
Texas Instruments said in its mid-quarter update that its first-quarter results will come in below expectations.
TI said it expects revenue for the quarter to come in between $3.21 billion and $3.35 billion, below its previous forecast of $3.27 billion to $3.55 billion. The chip maker also said it expects to earn 41 to 45 cents a share, below its previous forecast of 43 to 49 cent earnings.
Analysts were looking for earnings of 46 cents a share on a 6.5% rise in sales to $3.4 billion, according to Thomson Financial.
TI cited weakening demand for high-end wireless chips for the shortfall.
The news capped another rough day for stocks, as the major indexes fell to fresh 18-month lows on fears of liquidity problems at financial companies.
A number of tech names managed to escape with small gains, including Microsoft, Intel, Oracle and Applied Materials.
Iomega jumped 20% on a buyout offer from EMC.
Google lost 4.6% to a new 52-week low, and VMware fell 7.7%.
Level 3 lost 14% on the departure of its COO.
Ciena fell 6% on downgrades.
The Nasdaq fell 43 to 2169, the S&P lost 20 to 1273, and the Dow fell 153 to 11,740. Volume declined to 4.21 billion shares on the NYSE, and 2.15 billion on the Nasdaq. Decliners led by a 27-5 margin on the NYSE, and 23-6 on the Nasdaq. Downside volume was 90% on the NYSE, and 82% on the Nasdaq. New highs-new lows were 20-361 on the NYSE, and 32-478 on the Nasdaq.