Investors Favor Seagate (STX) as Intel (INTC) Warning Signals Continued Weakness from Thai Floods

With the S&P 500 down 1.56 percent early Monday, its notable shares of Seagate Technology (Nasdaq: STX) are only trading down slightly compared to peers.

Traders are likely responding to an Intel (Nasdaq: INTC) warning earlier this morning. The company cut its fourth-quarter and full-year outlook due to a shortage supply of hard disk drives. Click here for the full story.

Seagate is likely a play against the Intel guidance as the company has avoided the Thai market. With Intel citing the floods, investors are betting on continued weakness, something which bodes well for Seagate.

Investors may also be buying shares of STX on the news The Chinese Ministry of Commerce has endorsed the acquisition of Samsung Electronics' hard disk drive business. This comes following two extensions amid concerns of a monopoly.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Popular stocks with increasing option volume: INTC MU SPCX NFLX PLTR SNDK CRWV AVGO NKE WOLF MSTR
• Cinema United: issues joint letter to state AGs and Paramount
• Canadian and U.S. negotiators plan last-minute talks ahead of midnight tariff deadline - CBC News