Intel, Job Losses Sink Stocks
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A warning from Intel (NASDAQ: INTC) and a dramatic drop in private sector employment sent stocks to their worst drubbing in a month on Wednesday.
Intel (NASDAQ: INTC) shares tumbled 6% after the company warned that its fourth-quarter revenues will come in $500 million below estimates.
Satyam Computer Services (NYSE: SAY) plunged more than 90% after the company admitted to a massive accounting fraud, sending Indian stocks 7% lower. Its shares were halted on the New York Stock Exchange before trading began at 85 cents a share, down from Tuesday's $9.35 close.
Massive job cuts at Alcoa (NYSE: AA) and a Time Warner (NYSE: TWX) warning also weighed on stocks, as did ADP's report of a 693,000 loss in private sector jobs last month, a grim preview of Friday's U.S. Labor Department report.
Microsoft (NASDAQ: MSFT), Applied Materials (NASDAQ: AMAT), Nvidia (NASDAQ: NVDA) and Seagate (NYSE: STX) all lost as much or more than Intel's 6% loss.
But Dell (NASDAQ: DELL) and Sun (NASDAQ: JAVA) managed to escape with small gains.
NetScout (NASDAQ: NTCT) soared 27% on its guidance, while Ciena (NASDAQ: CIEN) gained for a second day on a Barclays upgrade.
Activision (NASDAQ: ATVI) also benefited from an upgrade, up 11% on a Piper Jaffray buy rating.
IXYS (NASDAQ: IXYS) fell 12% on a warning.
After the close, EMC (NYSE: EMC) delivered a pleasant surprise by reaffirming guidance.
The Nasdaq tumbled 53 to 1599, the S&P 500 lost 28 to 906, and the Dow fell 245 to 8769. Volume declined to 5.36 billion shares on the NYSE, and 2.07 billion on the Nasdaq. Decliners led by a 30-8 margin on the NYSE, and 20-7 on the Nasdaq. Downside volume was 89% on the NYSE, and 77% on the Nasdaq. New highs-new lows were 11-59 on the NYSE, and 7-27 on the Nasdaq.