Chips performed poorly again on Wednesday as investors worried that the weak economy could translate into a pronounced slowdown in PC sales.
Earlier in the week Barclays downgraded shares of chip goliath Intel to ‘Equal Weight’ from ‘Overweight’ and Baird downgraded the stock to 'Neutral' citing “a sharp deterioration in PC-related order trends."
Adding to the headwinds, J.P. Morgan analyst Christopher Danely said in a research note that checks with Taiwanese chip suppliers showed a downturn in orders, indicating that deals for personal computers are "falling off a cliff."
related investing news
How should you trade tech now?
Find out from Dan Niles of Alpha One. Watch the video now!
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to
Trader disclosure: On Aug 11, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (AKAM), (BAX), (FCX), (MOS), (PFE), (SU), (XBI); Terranova owns (GLD) Calls; Adami owns (AGU), (BTU),. (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck; Finerman and Finerman’s Firm owns (BAC); Finerman and Finerman’s Firm owns (JPM); Finerman & Finerman's firm owns (RIMM); Finerman owns (AAPL); Finerman's firm owns (ARM); Finerman’s firm owns (BBY); Finerman's firm owns (LEA); Finerman’s firm owns (KFT); Finerman’s firm owns (TSX); Finerman’s firm owns (GYMB); Finerman’s firm owns (PLCE); Finerman's firm owns (WMT); Finerman's firm owns (DAN); Finerman's firm is short (IJR); Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman’s firm owns S&P 500 puts; Jon Najarian owns (AKAM) short calls
For Brian Kelly
Accounts managed by Kanundrum Capital own (C)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (SLV)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (ANDE)
Accounts managed by Kanundrum Capital own (UNG)
Accounts managed by Kanundrum Capital are short (IAI)
For Kaushik Roy
Wedbush Securities Is A Market Maker In (WDC), (STX)
For Dan Greenhaus
***No Disclosures***
For Brian Stutland
***No Disclosures***
CNBC.com with wires.
