Intel, AMD down as chip sector falls; Fannie Mae, Countrywide end mixed; market talking real turkeys Wednesday

By Evan Weinberger

New York, Nov. 21 - Intel Corp., Advanced Micro Devices Inc., Micron Technology Inc. and Xilinx, Inc. all traded down Wednesday as activity slowed with market players filing out for Thanksgiving.

Mortgage-related convertibles had a mixed day, as Countrywide Financial Corp.'s convertibles ended Wednesday heading in opposite directions and Fannie Mae preferreds climbed higher.

Yahoo! Inc. ended the day down as a new report noted its search engine lost even more ground to Google.

Ford Motor Co. convertibles also moved lower Wednesday.

Even the opening of the season of good cheer couldn't shake the bad vibes investors are getting about the state of the economy. Relatively light volume magnified losses. "Nothing too exciting today," one analyst said. "I think we're definitely in holiday mode, especially this afternoon."

The Dow Jones Industrial Average plunged 211.10 points, or 1.62%, to close at 12,799.04.

The Nasdaq plummeted 34.66 points, or 1.33%, to close at 2,562.15.

The Standard & Poor's 500 was pruned to a 1,416.77 close, a loss of 22.93 points, or 1.59%, Wednesday.

Stocks and convertibles that traded actively on Wednesday for the most part kept up the trajectory they had in previous days.

No new issues priced Wednesday.

Broader economic woes hurt Intel

An analyst's note to investors from Baird & Co. warned that concerns within the broader economy may cut consumer spending on electronics, which would put a cap on Santa Clara, Calif.-based microchip leader Intel.

With more days like Wednesday, a stock price cap may be off in the future.

Intel stock (Nasdaq: INTC) lost 89 cents, or 3.49%, in trading Wednesday.

The company's 2.95% junior subordinated convertible notes due Dec. 15, 2035 closed Wednesday at 103.568 versus a closing stock price of $24.63. They closed Tuesday at 104.58 versus a stock price of $25.52.

Other chipmakers also down

Intel is far and away the industry leader among semiconductor producers. Other players in the sector don't have the scale to absorb a slowdown, analysts from several brokerages wrote in investor notes Wednesday. Their convertibles and stocks were hit hard Wednesday.

Sunnyvale, Calif.-based AMD watched its 5.75% convertible senior notes due Aug. 15, 2012 close Wednesday at 92.492 versus a closing stock price of $10.83. They closed Tuesday at 94.09 versus a stock price of $11.28.

AMD's 6% convertible senior notes due May 1, 2015 closed Wednesday at 81.6 versus a stock price of $10.83. They finished Tuesday at 83.5 versus a stock price of $11.28.

AMD stock (NYSE: AMD) was kicked for a 45 cent, or 3.99%, loss Wednesday. That loss brought AMD stock down to its low point for the year.

Boise, Idaho-based Micron Technology's 1.875% convertible senior notes due June 1, 2014 closed Wednesday at 84.6 versus a closing stock price of $8.08. The convertibles closed Tuesday at 86.35 versus a stock price of $8.53.

Micron stock (NYSE: MU) also lost 45 cents, but at a 5.28% decline, the loss looks far worse than AMD's.

San Jose, Calif.-based Xilinx's 3.125% convertible junior subordinated debentures due March 15, 2037 closed Wednesday at 86.84 versus a closing stock price of $21.59. They closed Tuesday at 88.21 versus a stock price of $21.95.

Stock in Xilinx (Nasdaq: XLNX), which produces programmable microchips, closed down 36 cents, or 1.64%, on the day.

Mixed day for mortgages

With all the bad news still flowing out of the housing sector, Calabasas, Calif.-based mortgage lender Countrywide's stock continued its bad run Wednesday. The company's convertibles, on the other hand, ended the day mixed.

Countrywide's Libor minus 350 basis point series A convertible senior debentures due April 15, 2037 closed Wednesday at 77 versus a closing stock price of $9.42. They closed Tuesday at 80 versus a stock price of $10.28.

Countrywide's Libor minus 225 bps series B convertible senior debentures due May 15, 2037 closed Wednesday at 75.5 versus a stock price of $9.42. The debentures closed Tuesday at 74 versus a stock price of $10.28.

Countrywide stock (NYSE: CFC) had a further 86 cents, or 8.37%, shaken out Wednesday.

Washington-based government-supported mortgage backer Fannie Mae rallied Wednesday. Fannie Mae's 5.375% series 2004-1 convertible perpetual preferred stock closed Wednesday up $3.28, or 9.46%, at $37.95.

Fannie Mae stock (NYSE: FNM) added 98 cents, or 3.47%, to close at $29.23 Wednesday.

Investors lose Yahoo!'s scent

comScore Inc., a Reston, Va.-based internet analysis shop, released a report Wednesday showing that while Google handled 58.5% of internet searches in October - up from 57% in September - Yahoo remained in second place at 22.9% of searches performed in the month. That marked a decline from Yahoo's 23.7% of the internet searches performed in September.

That report sent shares in Sunnyvale, Calif.-based Yahoo down Wednesday, and the convertibles joined the ride.

Yahoo's zero-coupon convertible senior notes due April 1, 2008 closed Wednesday at 128.93 versus a closing stock price of $25.71. They closed Tuesday at 132.25 versus a stock price of $26.72.

Yahoo stock (Nasdaq: YHOO) fell $1.01, or 3.78%.

Ford ends day down

Dearborn, Mich.-based automaker Ford may well give thanks that the markets are closed Thursday after Wednesday's performance.

Ford's 4.25% convertible senior notes due Dec. 15, 2036 closed Wednesday at 101.5 versus a closing stock price of $6.95. That's down from Tuesday's close of 102.4 versus a stock price of $7.24.

Ford stock (NYSE: F) fell 29 cents, or 4.01%, on the day.

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