Tags: financial markets | intel

Weak Intel Forecast Drags S&P 500 to Lower Close

Weak Intel Forecast Drags S&P 500 to Lower Close
(AP)

Friday, 26 January 2024 04:05 PM EST

The S&P 500 ended a five-session streak of record highs Friday, with Intel slumping after a bleak revenue forecast, while U.S. economic data showed inflation moderating.

All three major indexes recorded their third straight weekly gain and their 12th weekly advance out of 13.

A U.S. Commerce Department report showed the personal consumption expenditure index — the Federal Reserve's preferred inflation gauge —se moderately in December. This kept the annual increase in inflation below 3% for a third-straight month and bolstered the case for rate cuts this year.

On Thursday, data showed a strong fourth-quarter U.S. economic growth reading.

"These are good numbers," said Peter Cardillo, Chief Market Economist at Spartan Capital Securities in New York. "Taken with yesterday’s GDP numbers, this report strengthens the possibility of a soft landing, which continues to gain traction."

According to preliminary data, the S&P 500 lost 4.09 points, or 0.08%, to end at 4,890.07 points, while the Nasdaq Composite lost 55.13 points, or 0.36%, to 15,454.89. The Dow Jones Industrial Average rose 56.15 points, or 0.15%, to 38,105.28.

Intel tumbled to a six-week low after it gave a revenue forecast that badly missed estimates as it plays catch-up in the AI race while also dealing with a weak PC market.

Chip manufacturing tools maker KLA Corp dropped following its disappointing third-quarter revenue forecast.

The Philadelphia SE Semiconductor index was down for a second day after closing at a record high on Wednesday.

The S&P 500 in recent sessions returned to record highs for the first time in two years, extending a rally driven by optimism about the economy and lower interest rates, as well as bets on artificial intelligence.

American Express hit a record high after the credit card firm forecast a higher-than-expected annual profit. Visa declined after the world's largest payments processor's tepid current-quarter revenue growth forecast.

Apple fell ahead of its quarterly report next Thursday. The iPhone maker and Intel were among the stocks weighing most on the S&P 500.

Of the S&P 500 companies that have reported earnings so far, 78.2% have surpassed expectations, LSEG data showed, compared with a long-term average beat rate of 67%.

The S&P 500 and Nasdaq are up about 3% so far in 2024.

Colgate-Palmolive rose after the toothpaste maker posted upbeat fourth-quarter results.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
The S&P 500 ended a five-session streak of record highs Friday, with Intel slumping after a bleak revenue forecast, while U.S. economic data showed inflation moderating.
financial markets, intel
378
2024-05-26
Friday, 26 January 2024 04:05 PM
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