Heading Lower

Stocks are set to open sharply lower following an earnings warning from chip
giant Intel. While some analysts have commented that the actual warning is
fairly mild, stocks remain in a heavy sell mode.

The Dow futures are down 180 points, and the Nasdaq futures are down 92
points.

The S&Ps look to open down 26 points while the yield on the 10-year
Treasury is 5.81%.

Friday Movers

Intel
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announced that third quarter-to-quarter revenue gains would
slow to just 3% to 5% and that profit margins would likely decline to 62% from
the 63% to 64% analysts had expected. Intel cited weakening European sales as
the problem. Intel closed Thursday at 61 15/32 and is trading down sharply to 45
3/4 in pre-market activity.

The Intel news is weighing heavily on the tech sector, and getting hit hard
is computer maker Dell
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. Dell closed Thursday at 37 15/16 and is
trading down to 32 7/8 in pre-market activity, and that is the lowest level Dell
has seen since May, 1999.

Microsoft
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is testing its May 21 low of 60 3/8 in pre-market
action. After closing flat Thursday at 64 3/16, Microsoft is trading down to 60
3/8 in pre-market activity.

Thursday Follow-up

Internet incubator CMGI
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posted a fiscal fourth quarter loss of
$2.17 per share, which was better than the $2.45 per share loss that analysts
had expected. CMGI closed Thursday down 1/16 to 36 3/8 and is trading down to 34
7/8 in pre-market activity.