Intel Tops Estimates

Intel beat earnings and revenue estimates after the close on Tuesday, but slashed capex spending and said it expects revenues to decline sequentially.

During the day, the Nasdaq rose 14 to 1460, the S&P 500 gained 5 to 931, and the Dow climbed 56 to 8842. Volume was unchanged at 1.36 billion shares on the NYSE, but declined to 1.54 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 19-13 on the Nasdaq. Upside volume was 68% on the NYSE, and 72% on the Nasdaq. New highs-new lows were 92-19 on the NYSE, and 69-15 on the Nasdaq.

After the close, Intel edged higher after beating earnings estimates and reporting revenues of $7.16 billion, above consensus estimates of $6.92 billion. The company offered a wide range for first-quarter revenue guidance ($6.5-$7 billion versus estimates of $6.67 billion), and chip equipment stocks fell after the company cut 2003 capex spending to $3.5-$3.9 billion, below estimates of $4 billion and down from 2002’s $4.7 billion. Intel said it sees “no underlying economic growth.”

During the day, Alcatel soared 22% on positive guidance.

Avaya and Proxim scored big gains on a partnership with Motorola .

Overture fell 9.3% on mixed guidance.

Rambus and Varian edged higher on earnings news, Photon Dynamics plunged 22% after delaying its first-quarter earnings release until later this month.

Microsoft edged higher on Lehman Brothers comments that the company could beat estimates on Thursday.

Priceline and slipped on Priceline’s plan to offer name-your-own-price hotel rooms.

Cisco , up 2%, unveiled new switching appliances.

Dell , up 1.6%, made WiFi standard on its Latitude notebooks.

VeriSign , up 2.4%, announced plans to internationalize domain names.

IBM , up 1.2%, won a $350 million deal.

Nokia , up fractionally, is pushing wireless applications.

Transmeta gained 4.6% after launching a new chip.

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