Intel Sparks Market Crash After Hours

Blain Reinkensmeyer

Posted on Tue 15th Jan, 2008 05:43:34 PM

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All three major indices tanked today, with the NASDAQ closing down 2.45% to 2417, the DOW closing down 2.17% to 12501, and the S&P 500 finishing down 2.49% to 1380. If you think that is bad though guess again, because Intel’s missed earnings after hours has the whole market selling in a frenzy.

A few names to throw at you after hours:

1. Google (GOOG). The stock closed today at $637.65, and after hours is trading at a real time last of $625.50.
2. Apple (AAPL) closed today at $169.04, and after hours sits at $163.50.
3. Baidu.com (BIDU) closed today at $318.20, and after hours is down all the way to $307.55.
4. First Solar (FSLR) closed today at $204.79, and after hours has tumbled to $198.50.

Most of the above stocks were already down 5 – 9% on the day, which makes this sell off unexpected as a late afternoon rally did occur but quickly fizzled out.

Intel (INTC) had great earnings but missed estimates and as a result the stock sold off heavily. Live after hours Intel stock is trading at $19.56 after closing the day at $22.69. This is a 15%+ damper on the day. Intel was trading above $26 a share at the end of December, 2007.

Heading into tomorrow expect the market to open with a strong gap to the downside. I would predict the indices are set to test August support levels, for example the NASDAQ should easily move below 2400.

For the active trader though this is should be a great opportunity to make some easy money intraday if you catch some of these leaders at depressed levels. Just watch your technicals and be prepared for anything.