Shares of Intel Corp. (INTC) are expecting a lower profit margin which weighed on investor sentiment toward the semiconductor exchange traded fund (ETF). Semiconductor HOLDRs (SMH) fell on Tuesday to $28.13 after hitting an intraday low of $28.09.
It was the fund’s lowest point since Feb. 8, reports Wanfeng Zhou for Thomson Financial.
Much of the blame for the drop lies with recent news from Intel, SMH’s top holding at 24.2%. The company lowered its outlook based on falling prices in memory chips that are used in all kinds of gadgets, from cell phones to digital cameras.
Dow Jones reports that it’s likely just an overreaction. Intel is such a big player in the technology market that any sign of trouble sends shivers through the sector.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.