Intel Slammed After Issuing Lowered Guidance

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Intel Corporation INTC shares were trading sharply lower by $1.22 (4 percent) at $30.91 in Thursday's session. The catalyst for the decline is a reduced outlook for the first quarter.

As a result of the strong dollar and a weak economy in Europe, the company has reduced its Q1 sales outlook to $12.5 billion to $13.1 billion range vs. previous estimate of $13.2-$14.2 billion.

See Also: Intel's Lower Outlook Brings Down PC Stocks

After ending Wednesday's at $32.33, the impact in the marketplace was immediate as the issue spiked to $30.40 in pre-market trading before rising to $31.00 until the opening bell. During the regular session, buyers stepped ahead of that depressed level, only reaching $30.58 before staging a $1.00 rebound that ended at $31.60.

Since making the intraday high, it has fallen back under $31.00 and has been unable to mount another rally.