Texas Instrumentsgave tech investors something they hadn’t seen in a while after the close on Wednesday: a better than expected warning.
Shares of TXN rose 2% after the company said it expects third quarter revenues of $3.1-$3.24 billion, below analysts’ expectations for $3.3 billion in sales, as the chip inventory reduction appears to be hitting the wireless industry too.
However, with chip stocks hitting fresh 52-week lows after a number of high-profile warnings, investors breathed a sigh of relief that Texas Instruments’ guidance wasn’t worse. The company also raised earnings guidance on a lower effective tax rate. The company said it now expects third-quarter earnings of 27-29 cents a share, above 26-cent estimates.
Also after the close, Corningreaffirmed guidance, citing strong LCD demand. Ulticomand Comversebeat estimates, and kforceraised guidance.
The broader market ended the day lower on concern that upbeat comments from Federal Reserve Chairman Alan Greenspan could mean another rate hike when the Fed meets in two weeks. Also weighing on stocks was a Fed survey showing a slowing economy.
The Nasdaq lost 7 to 1850, the S&P 500 fell 5 to 1116, and the Dow declined 29 to 10,313. Volume rose to 1.25 billion shares on the NYSE, and 1.46 billion on the Nasdaq. Decliners led 19-13 on the NYSE, and 19-11 on the Nasdaq. Downside volume was 66% on the NYSE, and 60% on the Nasdaq. New highs-new lows were 155-16 on the NYSE, and 76-50 on the Nasdaq.
palmOnefell 13% after Nokiareleased its competitor to palmOne’s Treo 600.
Sierra Wirelesssoared 20% on a deal with Intel.
Tellabsclimbed 5% after negotiating new acquisition terms with Advanced Fibre.
Motorolalost 4% on a Merrill Lynch downgrade.
TriQuintfell 8% on a warning.
Cymer, ValueClickand LeCroysurged on their outlooks.
MapInfogained 7% on an acquisition.
PTEKfell 13% after losing IBM’sbusiness.
Mamma.comsurged 16% on a share buyback plan.