Here is the deal.
On Tuesday, chipmaker Advanced Micro Devices was one of the market’s most popular stocks, rallying 11% on rumors that it had inked an integral bargain with Intel Corporation (NASDAQ:INTC) and are confirming it during its meeting with analysts following Tuesday’s close.
As it happens, the rumor was nothing more than a rumor — Advanced Micro Devices had not signed a deal with Intel (at least not one which it may divulge yet), sending AMD to some reduction of 12.1 percent on Wednesday as disappointed investors lose their stocks.
The idea was first floated by tech-news website Fudzilla, with contributor Fuad Abazovic claiming, “We are now able to confirm the rumours that Intel has given up on Nvidia since it has written a cheque to license AMD’s graphics.” Even though the licensing agreement between Intel and Nvidia Corporation(NASDAQ:NVDA) finished in March and AMD is working with Intel on various other endeavors, AMD has not been named as a successor to Nvidia yet.
All stocks have been hit hard today, but banks took on greater than their fair share of water. The SPDR KBW Bank ETF (NYSEARCA: KBE) dropped to the tune of 4 percent on Monday. Leading the charge reduced, but was Bank of America. BAC stocks photographed a reduction of 6 percent to the session.
The prod for its pullback was turmoil in Washington D.C.. While investors are not any stranger to controversy against the White House, the latest form of it had been particularly alarming in that it implicates Trump in what might possibly amount to an obstruction of justice charge. Even though most investors do not observe the issue being taken to this extreme, many investors do think the issue may be so distracting to President Trump that he will be not able to implement his deregulation and tax-cut schedule anytime soon.
Finally, American Eagle Outfitters reminded the industry today that retailing is currently a miserable business to maintain in.
In its first fiscal quarter of 2017, American Eagle made an operating profit of 16 cents per share about earnings of $761.8 million. The earnings tally topped estimates of $743.6 million, although the profit reading misses estimates by a penny per share.
The majority of this 14.7% fall AEO took today, but likely originated from your retailer’s disappointing second-quarter outlook. American Eagle Outfitters is looking for a profit of between 15 and 17 cents per share for the quarter now underway, versus analyst estimates for income of 23 cents per share of AEO.