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Intel shares fall pre-market on Merrill downgrade

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7bB69BF4E6-E93D-40FE-8921-F6768B2EB2FD%7d&....

$INTC0.00, 0.00, 0.0%) fell 2.2% to $20.56 in pre-market trading Thursday after Merrill Lynch downgraded the chip maker to neutral from buy. The broker said weakening demand for its products and persistent excess capacity are likely to "keep a lid" on the stock for the intermediate term. Merrill cut its 2007 earnings estimate for Intel to $1.18 a share from a prior forecast of $1.30 a share. The broker said it is also skeptical about Intel shares performing in an environment in which the sector could show weakening stock price performance.