DEBORAH MARCHINI, CNN ANCHOR: The locus of the action today is going to be in technology stocks, many of which trade on the Nasdaq. We go to the Nasdaq marketsite now and to Sasha Salama, live.</s>SASHA SALAMA, CNN CORRESPONDENT: Hi there, Deb. Well, the futures right now are pointing to a lower open. And you're right, the chip sector and chip equipment will be in focus again. That sector put in some very sharp declines yesterday. Part of the reason was the overall market slumped nearly 3 percent, finishing at 2,029, on relatively light volume. Today, the big focus is right here: Intel. After losing 3.5 percent in the regular session, it's down again in the premarket, down below $29 a share. The world's biggest chipmaker is expected to report 10 cents a share after the close. And a big question is will Intel be able to stick by its forecast for a rebound in the second half of the year? Well, there are new signs of evidence that that's going to be difficult to do. One of those signs is coming from Novellus, a maker of computer chip equipment. That stock is down $2 in the premarket. The company did report a penny better on its earnings last night, but the CEO had some very cautious comments about uncertainty in the industry right now in chips. Weak demand for computers is continuing, and also for telecom gear -- in fact, Novell is saying that unless the fourth quarter is robust, orders for the full year are going to fall short. Add to this some comments from a trade group overnight that the chip equipment sectors may not rebound until 2004 -- Deb.</s>MARCHINI: Sasha, thank you. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Nasdaq Market Update: Chip Declines Lead Stocks Down