(By Salman - iStockAnalyst Writer)US stocks declined on Thursday after BofA-Merrill Lynch analysts downgraded the semiconductors industry, sending technology stocks lower.
The Dow Jones Industrial Average declined 93.87 points or 0.90% to finish at 10,332.44. The S&P 500 fell 14.90 points or 1.34% to end at 1,094.90. The Nasdaq Composite lost 36.32 points or 1.66% to 2,156.82.
Chip stocks fell across the board on on Thursday after Bank of America Merrill Lynch downgraded the sector saying that inventories in the supply chain are approaching a level suggesting a modest overshoot versus equilibrium levels.
Chipmaker Intel Corp. (NASDAQ:
INTC) plunged 82 cents or 4.08% to $19.30 after BofA-Merrill Lynch downgraded Intel to neutral from buy and lowered target price to $21.50 from $27, on concerns of weaker-than-expected demand for personal computers.
Texas Instruments (NYSE:
TXN) dropped 87 cents or 3.38% to $24.88.Shares of the second-largest US chip-maker were downgraded to to neutral from buy at BofA-Merrill Lynch.
Shares of Alcoa Inc. (NYSE:
AA), the largest US aluminum maker, slid 54 cents or 3.92% to $13.22.
Diversified US firm, General Electric Co. (NYSE:
GE) slumped 33 cents or 2.05% to $15.76.
Among energy stocks, Chevron Corp. (NYSE:
CVX) lost $1.58 or 2% to $77.34. Exxon Mobil Corp. (NYSE:
XOM)
declined 62 cents or 0.82% to close at $74.65.
Early on Thursday, Sears Holdings Corp. (NASDAQ:
SHLD) reported that its third quarter net income narrowed to $127 million, or $1.09 per share, compared with a loss of $146 million, or $1.16 per share, a year earlier. On an adjusted basis, the company lost 81 cents per share. Revenue declined 4 percent to $10.19 billion from $10.66 billion. Shares of the retailer subtracted $2.82 or 3.72% to close at $72.95.
Shares of Suntech Power Holdings Co. Ltd.
