ad info

 
CNN.comTranscripts
 
Editions | myCNN | Video | Audio | Headline News Brief | Feedback  

 

  Search
 
 

 

TOP STORIES

Bush signs order opening 'faith-based' charity office for business

Rescues continue 4 days after devastating India earthquake

DaimlerChrysler employees join rapidly swelling ranks of laid-off U.S. workers

Disney's GO.com is a goner

(MORE)

MARKETS
4:30pm ET, 4/16
144.70
8257.60
3.71
1394.72
10.90
879.91
 


WORLD

U.S.

POLITICS

LAW

TECHNOLOGY

ENTERTAINMENT

 
TRAVEL

ARTS & STYLE



(MORE HEADLINES)
 
CNN Websites
Networks image


CNN Today

Reinhardt: Market Overreacts to Intel Warning

Aired September 22, 2000 - 1:20 p.m. ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

LOU WATERS, CNN ANCHOR: Well, we have tremors up on Wall Street today. As we've been reporting, Intel, the world's biggest maker of silicon chips, has warned investors that its revenue projections will be falling short and Andy Reinhardt, who covers Intel for "Businessweek" joins us now from San Francisco.

One of the asset managers, Mr. Reinhardt, said: When Intel sneezes, the technology sector gets a cold. That's apparently what's going on here.

What's it all about?

ANDY REINHARDT, "BUSINESSWEEK": I think they may be overreacting slightly in this case. I mean, Intel said that PC sales would be soft in Europe but, in the rest of the world, the U.S., Asia, Latin America, apparently things are on track. And, I think it's a huge overreaction. I have to tell you,

WATERS: What's going on over in Europe?

REINHARDT: Well, a lot of companies, it seems to me right now, are blaming the low euro for raising prices of exported goods from the U.S. They're also talking about higher interest rates, higher oil prices. Generally, there seems to be some price sensitivity and people, apparently, aren't stocking up on PCs the way everyone expected. But, I'm not sure how widely that's going to spread to the rest of the world. That remains to be seen.

WATERS: I've often wondered how one company can have this profound effect on the market.

Can you answer that?

REINHARDT: Well, I mean, for years and years, Intel has been the leading indicator for the PC business, because there's an Intel processor inside almost every single PC. So, their sales -- their unit sales, in particular, reflect what demand is like for PCs. Of course, they're also a Dow 30 company. They have one of the highest market caps of any company in the world. So, it's not unreasonable that they would be seen as being such a bellwether.

But I think the business is changing. There's other companies, now, whose results are equally indicative of what's going on in the technology sector, like Cisco. WATERS: Based upon what you're telling me and the fact that 185 million Intel shares had traded hands by late morning up on Wall Street, I would imagine this would be a good time to be buying Intel.

Is that right or wrong?

REINHARDT: Well, I think probably is a pretty good time. I mean, the analysts are a little bit split. You know, there's been quite a bit of changing back and forth in the last couple of weeks in people's ratings of the stock. One analyst, I know, this morning, lowered her price target for the stock to 40. Other people are still holding on to numbers as high as 80. So, it's really a mixed bag. I think people really don't know what to do, right now, about Intel.

WATERS: All right, Andy Reinhardt in San Francisco, I'm going to have to interrupt.

Thanks for joining us.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com

 Search   


Back to the top  © 2001 Cable News Network. All Rights Reserved.
Terms under which this service is provided to you.
Read our privacy guidelines.