THE DROP: Chip-maker Intel Corp. cut its fourth-quarter revenue outlook to below Wall Street’s expectations.
THE REASON: Floods in Thailand have disrupted computer manufacturers’ production as many companies have factories there. Intel says revenue will be lower than expected because companies are reducing inventories and microprocessor purchases because of hard drive shortages.
THE FALLOUT: Shares of other chip-makers fell as well. Only stocks of financial companies fell more sharply as their industry was dogged by renewed anxiety over the debt crisis in Europe.