Intel (INTC) NewsBite - NVDA Warning Pulls Down INTC

Posted on Thursday, July 03, 2008 10:08 AM
Intel (INTC) opened at $20.64. So far today the stock has hit a low of $20.59 and a high of $20.7. INTC is now trading at $20.45, down 0.48 (-2.29%). After hitting a one-year high of $27.99 in December, the stock hit a one-year low of $18.05 in January. INTC shares are declining with other tech stocks after Nvidia Corp. (NVDA) lowered its second-quarter revenue outlook to a range between $875 million and $950 million, below analysts' expectations of $1.1 billion. NVDA cited end-market weakness for the lower forecast, which could be a bad sign for INTC. Technical indicators for INTC are bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $23 range. INTC hasn’t been above $23 since early June and has shown resistance around $22.30 recently. This trade could be risky if the company's earnings (due out on 7/15) are a positive surprise, but even if that happens, this position could be protected by resistance INTC might find at its 50 day moving average, which is currently around $23 and falling. [LHF- Seven Summits Strategic Investments NewsBite]
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