Wall Street is seen opening lower on Wednesday, weighed by technology stocks after a disappointing outlook from the world's biggest chipmaker, Intel Corp. . Intel stock fell in extended-hours trading after it cut its profit margin forecasts and said inventories rose, even though it reported an 18 percent rise in quarterly revenue and a near doubling of profit. "Obviously, Intel is a disappointment and though it's not that bad, it's spooking investors," said Peter Cardillo, chief market analyst with S.W. Back & Co. S&P 500 futures for the September contract fell 6.4 points to 1107.80, or 6.5 points below fair value, accounting for dividends, interest rates and time to expiration on the contract, indicating the underlying index may fall 0.6 percent at the open. The technology sector has a 16.6 percent weighting within the benchmark S&P 500 index, second only to financial stocks, which account for 20.5 percent of the index. Dow Jones industrial index futures fell 51 points, while Nasdaq 100 futures dropped 16 points. "Intel seems to have set the agenda, so expect many tech stocks in the Nasdaq to come under brutal attack," said David Buik, a spokesman for spread bettors Cantor in London. Intel traded at $24.90 on INET, little changed from levels during after-hours trading on Tuesday but down from its close on the Nasdaq at $26.14.
EARNINGS REPORTS
Other companies slated to report their earnings on Wednesday include: Bank of America Corp. , Advanced Micro Devices and Apple Computer . In economic news, U.S. retail sales for June will be released at 0830 EDT. Economists expect a slowdown of 0.6 percent for the month. Elsewhere, network equipment maker Juniper Networks Inc. may help to offset some losses in the tech sector after its quarterly profit excluding one-time items beat Wall Street expectations as demand in the telecommunications segment strengthened. Yum Brands Inc. , parent of the KFC, Pizza Hut and Taco Bell fast-food chains, may also gain after it reported higher quarterly earnings and raised its full-year profit outlook. Gambling stocks may be active after the Wall Street Journal reported that Harrah's Entertainment Inc. is near a deal to buy rival Caesars Entertainment Inc. , in what would be the gambling industry's second major takeover in a month. Station Casinos Inc. , the leading gambling operator catering to Las Vegas residents, may gain after it posted a better-than-expected quarterly profit, excluding one-time items, on Wednesday on strong returns at Station-managed tribal casinos and robust growth in Nevada.///