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Archive for Wednesday, January 17, 2001

Investors await Intel while blue chips rise

January 17, 2001

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— Investors awaiting the release of Intel's earnings took some bets on blue-chip stocks Tuesday, but otherwise traded cautiously in high-tech and Internet sectors.

When Intel released its results after the market closed, Wall Street's reaction was muted. After reporting better-than-expected earnings but predicting tough months ahead, the chipmaker's shares held steady as did those of PC makers Dell and Gateway.

Analysts said the reaction suggested that the market already had priced in the effect the decelerating economy would have on Intel's price.

The Dow Jones industrial average ended regular trading up 127.28 at 10,652.66.

The Nasdaq composite index was off 7.95 at 2,618.55.

With fourth-quarter earnings reports beginning, Wall Street spent the session focused on earnings outlooks rather than specific quarterly results, which in many cases already have been factored into stock prices.

Pharmaceutical and manufacturing stocks advanced, while technology issues languished on concerns about what Intel's earnings forecast would look like.

Intel traded up to $32 in after-hours trading, after finishing down 75 cents to $31.38.

The chipmaker's fourth-quarter results beat analyst estimates by a penny, but the company warned that first-quarter revenues would be down 15 percent because of the slowing economy and seasonal factors.

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