Ticker Shock: Intel Pushes; JPMorgan, Delta Get Pulled Down
Wednesday's top stories and stocks with potential to move.
The Dow, the S&P and Europe are currently in the red, and Asia is a mixed bag: The Hang Sang is down almost 5%, but the Nikkei is up a little over 1%.
Hard hats back on, folks.
After the close on Tuesday, the chip-maker reported a third-quarter profit of $0.35 per share - one penny north of expectations. But the story isn't so clear-cut: On the downside, revenue came in at about $10.22 billion, below the $10.25 billion the Street had been expecting.
Intel also said that "it's hard to know what impact the financial crisis will have on end customer demand," and indicated that it thinks fourth-quarter revenue will come in between $10.1 and $10.9 billion. Not so good, given that the Street is currently at about $10.8 billion.
But my interest was piqued by its gross margin, which came in at 58.9%, up from 55.4% percent in the second quarter.
On the plus side, I think there's this sense out there that Intel is playing it conservative, and that it'll hit its targets at the end of the day.
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My take: I think all of this is a push. The stock could get a bounce today, because things don't seem that bad. But I do think that there will be a better entry point down the road, thanks to the potential for tax-loss selling. Again, the stock is trading toward the lower end of its 52-week range.
For its third quarter, JPMorgan posted a loss of $0.06 per share before a substantial gain related to the pickup of WaMu's banking operations.
Not terrific - but good insofar as the Street was reportedly looking for a loss of between $0.21 and $0.29 per share.
The bad news: Revenue came in at about $14.7 billion, which was a country mile south of the roughly $16 billion or so analysts had been expecting.
My take: That's a pretty big revenue miss, and I suspect the shares are going to take a bit of a hit. The fact that the larger market is looking weak today probably won't help matters.
That said, I do think that JP Morgan has the potential to be a big winner longer term, thanks at least in part to its purchase of WaMu. I'd rather wait for a pullback though to the mid- or low $30s.
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