The semiconductors sector and related exchange traded funds were dragged down by disappointing results out of Intel (NasdaqGS: INTC) as the chipmaker experiences product delays and rising competition.
Bearish traders, though, capitalized on the misery with the ProShares UltraShort Semiconductors (NYSEArca: SSG), which takes the -2x or -200% daily performance of the Dow Jones U.S. Semiconductors Index, and the Direxion Daily Semiconductors Bear 3x Shares (NYSEArca: SOXS), which provides a -3x or -300% performance of the PHLX Semiconductor Select Index. On Friday, SSG jumped 3.9% and SOXS increased 2.3%.
Intel shares plunged 8.6% Friday and broke below its long-term support at the 200-day simple moving average.
While the chipmaker revealed strong second quarter earnings and revenue, analysts were concerned about rising competition from Advanced Micro Devices, CNBC reports.