U.S. Stocks Lower on Intel Earnings, Fed Meeting Next Week
U.S. stocks traded lower Friday morning, with tech leading declines, as investors anticipate a grim quarterly update from Intel (INTC). The ailing chip giant is expected to report weak results, potentially clipping near-term earnings. The central bank is set to meet next week, and is expected to debate how much further they need to go in taming inflation before pausing rate rises this spring.
Elsewhere in stock moves, Chevron (CVX) closed up more than 4% after announcing plans to buy back $75 billion of its shares and raise its dividend by 6.3% to $1.51 a share. Visa (V) shares were higher after the company reported better than expected results late Thursday. Hasbro (HAS) announced it will cut its workforce by 15%, or 1,000 employees, effective in the coming weeks.
The U.S. 10-year Treasury note, used as a benchmark, remained beneath the 3.5% mark and decreased by 0.031% to 3.436%. In December, the core Personal Consumption Expenditure (PCE) Index, the Federal Reserve’s preferred measure of U.S. inflation, dropped to 4.4% on an annualized basis due to a decrease in personal spending and meager income increases.
Tesla (TSLA) rose 11% after the company announced record quarterly profits and raised its guidance for 2021. Shares of Intel (INTC) sank 10% after the company reported quarterly results that missed analysts forecasts.
Investors are also paying close attention to the latest data that shows consumer spending rose at a slower pace in December and initial jobless claims fell again to 187,000, the lowest level since April 2022. The data as a whole indicated greater strength in the U.S. economy despite concerns about a potential recession.
Looking ahead, investors will be watching for the latest updates from the Federal Reserve meeting next week and other corporate earnings. Crypto currencies also remain in focus, as investors track the latest news and developments.
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