The pre market futures were already under pressure from the ADP employment report issued a short time ago. But moments ago Intel (INTC) issued what could be called an earnings warning.
INTEL CUTS FORECAST, Q4 REV AT $8.2B V $8.74BE ($9B PRIOR ESTIMATE)
- Q4 gross margins will be at low end of estimates at 55% +/- ‘a couple points’
- As a result of the year-end market price of Clearwire Corporation stock, Intel will impair the value of its investment, resulting in a non-cash charge to fourth-quarter earnings of approximately $950M
- Sees loss from equity investments of $1.1-1.2B vs prior view of $50M
- Guides R&D spending $2.6B v $2.8B prior expectation
-Says sales are down 23% year over year
When the Intel news hit the wires the futures dropped once again.
S&P 500 E-Mini Futures - Hourly Chart
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