Chips Weighing On Stocks
A upwardly revised second-quarter productivity report looks like it has
failed to inspire stocks Wednesday, as all three major averages are set to slip
at the open. Analysts had expected the productivity report to show a 5.5% rate
of increase.
The Dow futures are down 20 points, and the Nasdaq futures are down 14.50
points.
The S&Ps look to open down 3.50 points while the yield on the 10-year
Treasury is 5.71%.
Wednesday Movers
News that Citigroup
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a stock deal worth more than $31 billion has shares of the Texas-based financial
services company trading up sharply on Instinet. Associates closed Tuesday at 28
and is trading up to 39 on Instinet.
Online brokerage E*Trade
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following an upgrade from SC First Boston. E*Trade closed Tuesday up 1/4 to 18
1/8 and is trading up to 19 5/8 in pre-market activity. Ameritrade
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is also moving higher and is trading up to 21 after closing Tuesday at 18 5/8.
Tuesday Follow-up
Following Tuesday’s downgrade and subsequent drop, Intel
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trading lower ahead of the open. After closing down 4 1/16 to 69 1/4 on Tuesday,
Intel is trading down to 68 in pre-market activity.
Related chip stocks are also under pressure, with Applied Materials
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set to open lower. Applied Materials closed Tuesday at 84 7/16 and is trading
down to 82 5/8 in pre-market activity.