Intel Sell-Off Triggers Dow’s 21-Point Plunge

Blue-chip stocks ended a volatile session sharply lower Wednesday, but widely divergent performances by computer-related shares left broad indexes mixed.

The Dow Jones industrial average finished down 21.32 points at 5,066.90 after shifting course throughout the session.

The closely watched blue-chip average rose about 18 points at the open, retreated to negative 17 points, pared its losses around midday, but declined a second time as computer-driven selling programs took hold near the close.

Advancing issues edged out decliners on the New York Stock Exchange. Big Board volume was moderately heavy at around 458.73 million shares, just above Tuesday’s pace.

“It was really amazing to see the scattered and divergent action in the (technology) group,” said Richard McCabe, Merrill Lynch & Co.’s chief market analyst. He said some technology stocks had retreated enough to provoke some selective bargain-hunting.

Computer stocks dove at the open in reaction to Intel’s earnings report, released late Tuesday.

The microchip maker posted fourth-quarter net earnings of 98 cents per share. That was well above last year’s 43 cents after a special costly repair of flawed Pentium chips, but below analysts’ estimates of $1.09 a share.

Some of the stocks that moved substantially Wednesday:

NYSE

Wal-Mart Stores Inc. fell 2-1/8 to 20-3/8.

The nation’s largest retailer said Wednesday it sees earnings between 40 cents and 42 cents a share for the fourth quarter ending Jan. 31, below the 45 cents a share reported a year ago and the 47 cents expected by analysts. Wal-Mart blamed disappointing holiday-season sales and extreme weather conditions in January.

Minnesota Mining & Manufacturing Co. fell 3-1/2 to 63-3/4.

The St. Paul, Minn., diversified manufacturer said fourth-quarter earnings, excluding one-time restructuring expenses, will fall below year-ago results and Wall Street estimates.

Citicorp rose 1-1/8 to 69-3/8.

BankAmerica fell 1-1/8 to 60-1/2.

Citicorp posted fourth-quarter net income of $1.72 a diluted share compared with $1.95 in the year-earlier period, and topped forecasts of $1.65. BankAmerica reported quarterly earnings of $1.74 a share, up from $1.41 in the same period a year earlier.

NASDAQ

Intel Corp. fell 5-5/8 to 50-1/8.

The world’s biggest manufacturer of computer chips reported disappointing fourth-quarter earnings late Tuesday, blaming the results on falling prices and weaker-than-expected demand for personal computer motherboards.