Dow slips amid semiconductor pessimism
Stocks sagged on Wall Street today as a disappointing sales forecast from Advanced Micro Devices sparked pessimism about semiconductor issues.
The Dow Jones industrial average fell 64.81, or 0.61%, to 10,556.22.
Broader stock indicators were also lower. The Standard & Poor’s 500 index was down 7.26, or 0.61%, at 1,182.99. The Nasdaq composite index dropped 17.42, or 0.83%, to 2,079.62.
The Russell 2000 index of smaller companies was down 6.21, or 1.01%, at 611.53.
Despite the losses, analysts were not overly alarmed by the day’s trading, or the fact that the major indexes are all down for the year – traditionally a negative indicator for Wall Street.
Advanced Micro Devices sank 26%, or $5.27, to $14.86, following the chip maker’s warning that its fourth-quarter operating income would be “down significantly” from the third quarter.
Several investment firms, including Lehman Brothers and Piper Jaffray, cut their ratings after the company issued its forecast.
The news weighed on other stocks, with AMD rival and Dow Jones industrials component Intel shedding 34 cents to $22.54. Intel is to report earnings after the close of today’s session.
