US STOCKS-Nasdaq slips on Intel; S&P 500, Dow flat

Thu, Nov 13 2008, 16:32 GMT
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By Ellis Mnyandu

NEW YORK, Nov 13 (Reuters) - U.S. technology shares slipped in choppy trade on Thursday as Intel Corp's lowered revenue outlook heightened fears that the slumping global economy is stifling technology spending by businesses and consumers.

Even so, both the Dow and the S&P 500 eked out slim gains, helped by a search for beaten down shares in the energy, materials and financial sectors following the market's three-day losing streak.

The search for bargains offset lowered outlooks from Intel Corp , a chip maker, and Wal-Mart Stores , the world's largest retailer.

Shares of Exxon Mobil, jumped nearly 4 percent, making the stock a top boost to the Dow, ahead of rival Chevron , up almost 3 percent at $69.10. The rise in energy shares coincided with a rebound in oil prices, with U.S. front-month crude up $1.18 at $57.36 a barrel.

"Energy, utilities and materials stocks are kind of leading the way and to me it looks like the global growth story," said Jack Ablin, chief investment officer, Harris Private Bank in Chicago. "There's kind of a renewed hope that the global growth story will continue notwithstanding the problems in the United States."

The Dow Jones industrial average edged up 6.93 points, or 0.08 percent, to 8,289.59. The Standard & Poor's 500 Index added 2.71 points, or 0.32 percent, to 855.01. The Nasdaq Composite Index dipped 7.16 points, or 0.48 percent, to 1,492.05.

Investor sentiment remained on shaky ground as a government report showed the number of people filing new claims for jobless benefits shot to its highest in seven years in the recent week.

Intel shares dropped 0.4 percent to $13.49. Shares of BlackBerry devices maker Research In Motion tumbled 5.1 percent to $41.03 after a brokerage slashed its price target on the stock.

The soured mood over big-cap technology caused the Nasdaq to set a new 2008 low shortly following the market open, which also marked the index's lowest level in more than 5 years.

Wal-Mart posted a stronger-than-expected third-quarter profit, but cut its full-year outlook.

Its shares were off about 1 percent at $52.14 on the New York Stock Exchange.

In other corporate news, Citigroup Inc is in talks to buy U.S. regional lender Chevy Chase Bank FSB , which operates in the mid-Atlantic region, the Wall Street Journal reported.

The newspaper also said some directors on the Citigroup board are considering a move to replace chairman Win Bischoff as they are dissatisfied with the company's performance.

Citigroup shares continued with their historic descent, sliding 5.4 percent to $9.12.

At Wednesday's close the market stood a whisker away from testing its October 10 low, a development which traditionally entices bulls to initially make a stand against the bears, in turn helping provide the market with some short-term technical support.

(Editing by Kenneth Barry)

((Ellis.Mnyandu@thomsonreuters.com; +1 646 223 6085; Reuters Messaging:ellis.mnyandu.reuters.com@reuters.net)) Keywords: MARKETS STOCKS

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