did little to soothe investors’ fears about a slowdown in tech spending when it released second-quarter results after the close on Tuesday.
Shares of Intel fell 5% after the chip giant met analysts’ estimates with earnings of 27 cents a share, but revenues of $8.05 billion came in under $8.11 billion estimates. Intel’s third-quarter revenue guidance of $8.6-9.2 billion compared favorably to analysts’ estimates of $8.7 billion, but gross margin guidance of 60% was two percentage points below estimates, as Intel faces a double whammy of falling selling prices and stubborn component costs. Intel said it also expects higher sales in lower-margin products like flash memory and chipsets.
Analysts also remain concerned about risk from Intel’s growing inventories, as it ramps up for new products.
added pressure to the chip sector earlier in the day with comments that new orders remain flat. The news came a day after Merrill Lynch downgraded Intel and the chip sector on concern that the cycle may peak earlier than expected. Companies are reportedly pushing out technology spending in general.
Also after the close, Juniper Networks
blew past analysts’ estimates, and Imation
Stocks were mixed during the day on nervousness ahead of Intel’s numbers and a weak earnings report from Merrill Lynch
The Nasdaq lost 5 to 1931, the S&P 500 gained 1 to 1115, and the Dow climbed 9 to 10,247. Volume rose to 1.2 billion shares on the NYSE, and 1.52 billion on the Nasdaq. Advancers led 17-15 on the NYSE, and decliners led 15-14 on the Nasdaq. Upside volume was 55% on the NYSE, but only 34% on the Nasdaq. New highs-new lows were 61-31 on the NYSE, and 29-97 on the Nasdaq.
plunged 23% on news that the company will restate revenues and institute a new revenue recognition method.
gained 5% after Oracle
extended its offer for the company.
rose 4% on a huge deal with Verizon
rallied 12% after the company predicted strong growth.
gained 5% after beating estimates and raising guidance.
fell on warnings.