Stock futures are at their lows of the morning after last night's earnings disappointment from chipmaker Intel (NASDAQ:INTC), which trades down 17% from yesterday's close at $13.68 in pre-market action.
Shares of another chipmaker, Motorola (NYSE:MOT) $10.10, are getting hit lower at $8.82 over the New York ECNs after matching earning's estimates of analysts last night, but this morning's conference call has the company guiding lower for Q4 and fiscal year 2003. On its conference call, the company says it expects Q4 sales of $7.1 billion, which is down from prior guidance of $7.5 billion, and EPS of $0.10, excluding special items, which is down from prior guidance of $0.14 EPS. For fiscal year 2003, MOT forecasts sales of $27.5 billion, down from prior forecast of $29.0 billion and EPS of $0.40 versus prior estimates of $0.45 EPS. The company's COO said in his opening conference call remarks that the company has experienced reduced visibility in its outlook for key markets, particularly in the last 30 days.
The number two automaker in the world has Ford Motor (NYSE:F) $8.87 ticking higher at $8.90 over the New York ECN after turning in a $326 million net loss in its third-quarter, or $-0.28 EPS. Excluding items, the Dearborn, Michigan-based company said it earned $220 million, or $0.12 per share, which was well ahead of analyst's estimates as polled by Thomson First Call expecting $0.03 EPS. Ford said the net figures included a $525 million loss for the sale of its Kwik-Fit business and other operations, a $158 million charge for derivative and hedge trading and a $142 million tax refund. Looking ahead, Ford's CEO said the company expects a "slight profit" in the fourth quarter and a 40-cent profit for the year. By year's end, the company will capture $1 billion from selling assets it doesn't need.
S&P futures (sp02z) currently trade down 12.4 points at 870.30. NASDAQ futures (nd02z) are off 31 points at 920 and Dow futures (dj02z) are lower by 102 points at 8,150.
Fair value for the S&P 500 today is $0.38. That price will not change during the session. HL Camp & Company has their computers set for program buying at $1.58 and set for program selling at $-2.02. Fair value for the NASDAQ-100 today is $2.55