An unexpected write-off from Intel and meager job growth sent stocks sprawling on Friday.
Intel slumped 4% despite raising guidance after the close Thursday. Investors were unnerved by a $600 million goodwill impairment charge that will shave 6 cents a share off fourth-quarter earnings. Intel said it misjudged the long-term growth of its wireless and flash memory business, and the write-off was largely due to the company’s $1.6 billion acquisition of DSP Communications in 1999. Intel said its core microprocessor business remains strong, but investors were concerned about the company’s failed efforts at diversification.
The broader market fell on weaker than expected November job and wage growth.
The Nasdaq tumbled 30 to 1937, the S&P 500 lost 8 to 1061, and the Dow dropped 68 to 9862. Volume declined to 1.23 billion shares on the NYSE, and 1.64 billion on the Nasdaq. Decliners led 18-14 on the NYSE, and 20-10 on the Nasdaq. Downside volume was 70% on the NYSE, and 80% on the Nasdaq. New highs-new lows were 208-2 on the NYSE, and 99-10 on the Nasdaq.
Adobe fell 6% on a downgrade.
Texas Instruments declined 2% ahead of its mid-quarter update on Monday.
Nokia lost 2% on reports that the company is losing European market share.
Oracle slipped 2% on security flaws.
University of Phoenix Online tumbled 5% on concerns about irregularities in the education sector following problems at Career Education
earlier this week.
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