August 30, 2010 / 12:39 AM / 9 years ago

Intel trips circuit breaker shortly after news

NEW YORK (Reuters) - Shares of Intel Corp were halted earlier on Friday as the stock tripped a circuit breaker shortly after the company’s revenue warning set off a flurry of trading.

NYSE Euronext said the trades happened on its all-electronic exchange Arca and would be canceled. No other details were available

Trading in Intel, the world’s largest chipmaker, was initially halted just before 10 a.m. (1400 GMT) ahead of its news. When it resumed trading at 10:15 a.m., the stock traded at $16.55. Two minutes later, the stock traded at $18.21, making a 10 percent increase between the two prices, and triggering the halt at 10:17 a.m.

Intel’s shares traded in fast, choppy action after it warned third-quarter revenue could fall short of its own estimates by more than $1 billion. Shares were up 1.4 percent at $18.42 in midday trade.

Other shares have also been halted by circuit breakers after U.S. regulators imposed new rules in an effort to prevent another “flash crash,” such as the one in early May, when the Dow Jones industrial average plummeted 700 points in a matter of minutes before rebounding.

The rules, introduced in June for a six-month trial period, have been controversial, with some investors saying they interfere with trading and restrict necessary price adjustments.

Previous halts included Washington Post Co, Citigroup Inc, Genzyme Corp and Anadarko Petroleum Corp..

Reporting by Leah Schnurr; Editing by Eric Walsh

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