Investing.com - Semiconductor stocks took it on the chin in midday trading, pulling the overall tech sector lower, as investors reacted to weak guidance.
Meanwhile, shares of Walt Disney (NYSE:DIS) fell on possible concerns about its theme park business.
The Philadelphia Semiconductor Index dropped about 3% at 12:05 PM ET (16:05 GMT). The S&P 500 Information Technology index fell about 1.3%.
Texas Instruments (NASDAQ:TXN) was a big drag on the chip stocks after it guided fourth-quarter profit and revenue below consensus after the bell yesterday. That led to a host of price-target cuts from sell-side analysts as the company said demand fell in most markets. Its shares dropped about 4%.
STMicroelectronics NV NYSE:STM) also hit the sector with downside guidance on revenue. Its shares tumbled about 11%.
The grim view on semi stocks as a whole hit heavyweight Advanced Micro Devices hard, even though the company is still to report earnings after the bell today.
AMD (NASDAQ:AMD) shares fell about 5%.
Looking to entertainment, Walt Disney Company (NYSE:DIS) stock fell about 3%.
Shares may have been dented by a disappointing earnings report from Six Flags (NYSE:SIX) (which actually released its earnings last night at 11:00 PM ET), which could call into question the strength of Disney’s theme park business.