In this Oct. 1, 2019, file photo the symbol for Intel appears on a screen at the Nasdaq MarketSite, in New York. Intel is replacing its CEO after two years. The computer company said Wednesday, Jan. 13, 2021, that Pat Gelsinger will become its new CEO, effective Feb. 15. He takes over for Bob Swan, who became CEO in January 2019. (AP Photo/Richard Drew, File)
BOSTON (AP) — The computer chipmaker Intel Corp. on Friday blamed an internal error for a data leak that prompted it to release a quarterly earnings report early. It said its corporate network was not compromised.
The company’s chief financial officer, George Davis, had earlier told The Financial Times that Intel published its earnings ahead of the stock market’s close on Thursday because it believed a hacker stole financially sensitive information from the site.
The company’s quarterly results were originally scheduled to be published hours later after the close of trading on Wall Street Thursday.
“An infographic was hacked off of our PR newsroom site,” the newspaper quoted Davis as saying. It quoted an unnamed company spokesperson as saying Intel was notified that the graphic was circulating outside the company.
Early access to such information could benefit a stock trader.
On Friday, Intel issued a statement saying it had determined that no hack occurred.
It said "the URL of our earnings infographic was inadvertently made publicly accessible before publication of our earnings and accessed by third parties. Once we became aware of the situation we promptly issued our earnings announcement. Intel’s network was not compromised and we have adjusted our process to prevent this in the future.”
The company's stock price closed down more than 9% Friday.
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Compare These Stocks Add These Stocks to My Watchlist 7 Stocks That Will Help You Forget About the Fed
Normally when the Federal Reserve (i.e. the Fed) makes an announcement, the market reacts predictably. That’s due, in large part, to the nature of what the Fed normally announces. Will interest rates go up, down, or remain unchanged? And for their part, the markets have a pretty good idea what the Fed will do before they do it.
But the Fed’s announcement of August 26 was a little different. They talked briefly about interest rates (they’re staying really low for a long time). But they were more concerned about inflation. Well, the Fed is always concerned about inflation, but this time they really mean it. Basic economics says that low-interest rates should spur inflation.
However, the market has been defying conventional wisdom and the Fed is not getting the inflation they want. So the Fed has basically said that they’re letting inflation go rogue. If it goes above their target 2% rate, so be it. The Fed is done trying to hit a target.
At first, the markets cheered the news. Not only was the Fed not taking away the punch bowl, but they were also going to keep the low rate liquidity going for a long time!
But after a little while to digest things, investors are realizing they have to be grown-ups about this. And now investors are considering how to rebalance their portfolios for the remainder of 2020.
I don’t know about them, but if I were you I would target companies that have a high free cash flow (FCF). Whether it’s your personal finances or in evaluating a stock, cash flow is your friend.
When a corporation has high FCF, they have more strong growth in good markets and more flexibility during when the economy is weaker.
As institutional investors come back into the market, it’s time for you to reposition your portfolio for whatever comes next.
View the "7 Stocks That Will Help You Forget About the Fed".
