Noon Market Update

The market is up again today. This looks to be the ninth rally for the S&P 500 in the last ten sessions (granted, some of those “up days” were puny).

The Buy List is doing well. Both Fiserv (FISV) and Becton, Dickinson (BDX) are at new highs today.

Christopher Danely, an analyst at J.P. Morgan, has said that Intel (INTC) is in danger of missing Wall Street’s earnings estimate.

Danely writes that checks in Asia find orders from the PC food chain in November were stable with October levels, but didn’t increase. He notes that Intel had indicated it needed an uptick in November and December orders to meet its Q4 outlook; he thinks the chip maker is “tracking towards the low end of its Q4 revenue guidance.”

The analyst notes that notebook contract manufacturer shipments in November were seasonal, but below plan, with shipments flat with October, below expectations of a 2% rise. For Intel (and the notebook makers) to meet estimates, he says, the industry will need to see an above-seasonal December. Danely notes that the notebook manufacturers are forecasting a 1% sequential rise in shipments, above the seasonal average 10% decline.

Danely thinks Intel is likely to miss the $11.4 billion midpoint of guidance, and will come in flat sequentially at $11.1 billion.

Posted by on December 14th, 2010 at 11:57 am


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