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RealTime IT News

Intel Cuts CapEx Spending

Intel beat estimates after the close on Tuesday, but once again provided wide-ranging forward guidance and announced that it will cut capital spending for 2002.

The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped 1 to 186, and the Nasdaq climbed 10 to 2000. The S&P 500 gained 7 to 1146, and the Dow rose 32 to 9924. Volume rose to 1.38 billion shares on the NYSE, but declined to 1.67 billion on the Nasdaq. Advancers led by 18 to 12 on the NYSE and 18 to 17 on the Nasdaq.

After the close, chip equipment makers Applied Materials , Novellus and KLA-Tencor sold off on Intel's CapEx guidance. eBay fell despite beating estimates by a penny and reaffirming estimates. RF Micro Devices fell on a warning, and DoubleClick rose after beating estimates. Handspring also topped estimates.

During the day, Corning was unchanged despite warning, while E*Trade fell 4% despite beating estimates and raising guidance.

Check Point plunged 13% after missing estimates.

NVIDIA surged 9% on positive analyst comments.

Some technical comments on the market: Note: To see the charts in the text email newsletter, click on the internetstockreport.com story link at the top of the newsletter.

The Nasdaq 100 (first chart) may be putting in a head and shoulders top here. Critical support is 1580; if that neckline breaks, 1400 would become the downside target. One hint that it might break down is the biotech index (second chart), which has already broken a neckline and appears headed for 480-490. The Nasdaq (third chart) is not putting in a recognizable top. For tomorrow, resistance is 2010, and support is 1980, 1960, and 1932-1947. The S&P (fourth chart) has resistance at 1150-1160, and support is 1142, 1134-1136 and 1125. The Dow (fifth chart) faces resistance at 9950-10,000, and has support at 9900 and 9800.

Special report: For a free introduction to technical chart patterns, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.