Market WrapUp (08-21-03)

Financial Sense Online ^ | 8/21/03 | Scott Middleton

[Starwind]

Markets popped this AM on Intel upward guidance. SP & ND futures shot up at 6:30 AM EDT.

From Dow Jones Newswire:
"SANTA CLARA, Calif. (Dow Jones)--Intel Corp. (INTC) Friday raised its sales forecast for the third quarter, saying its processor business is generally trending higher, while demand for communications products remains soft."

"In a press release, the world's largest chip maker said it expects third-quarter revenue between $7.3 billion and $7.8 billion, compared with its previous forecast of $6.9 billion to $7.5 billion."

And just a month ago Intel saw no signs of increased demand (except for back to school sales which they were relying on). Yet Dell is slashing prices and HP sales missed forecasts (on agressive pricing) - so where's the demand coming from that only Intel now sees, but didn't a month ago?

This might be the back-to-school cyclical demand Intel mentioned - Again from the Q2 conf call:

Typically the second half of the year is better for Intel as it benefits from the back-to-school and holiday shopping seasons. Bryant said that historically Intel's revenue in the third quarter increases 5% to 7% sequentially. The midpoint of the company's third-quarter sales target, which stands at $6.9 billion to $7.5 billion, represents a 6% increase in sales, noted Bryant.

[Starwind]

Now Bryant is saying:

+DJ Intel CFO: All Businesses Performing Better Than Expected

as opposed to earlier this AM

"while demand for communications products remains soft."

This reminds me of 1999 when Intel couldn't seem to manage it's expectations and Barrett was making a lot of unsubstantiated boasts about how Intel would clean SUNW's clock. Who's at the helm over there?

[Beck_isright]

" Who's at the helm over there?"

Probably an ex-FNM CEO...

[Starwind]

DJIA popped to 9499.97 by 9:35 EDT and at 10:35 EDT is now back to 9433 (+10), SPX has just gone in the red, and the NDX has lost 2/3rd's of it's opening gain.

Kids, don't trade this market at home.

[arete]

More hype than substance IMO. Wall Street needs some kind of good news to hype to keep the market moving up especially with so much bad news coming out in the jobs market and on the global political front. I expect this type of over hyped flim flam to continue as insiders like Michael Dell sell into the scam.

Richard W.

[Beck_isright]

"Kids, don't trade this market at home."

But,but,but, that's not what CNBSC is telling me to do...</sarcasm off

[Beck_isright]

" I expect this type of over hyped flim flam to continue as insiders like Michael Dell sell into the scam."

And man has he sold alot of his own shares the last 3 years....

[razorback-bert]

I have been eating spam sushi all my life, pop it live out the can , slice and eat on a cracker. Sometimes, I go all out and put american cheese on top.