U.S. stocks traded lower Friday morning, with tech leading declines, as investors anticipate a grim quarterly update from Intel (INTC).[0] 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.[1]
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.[2] Visa (V) shares were higher after the company reported better than expected results late Thursday.[3] Hasbro (HAS) announced it will cut its workforce by 15%, or 1,000 employees, effective in the coming weeks.[4]
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%.[5] 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.[6]
Tesla (TSLA) rose 11% after the company announced record quarterly profits and raised its guidance for 2021.[1] Shares of Intel (INTC) sank 10% after the company reported quarterly results that missed analysts forecasts.[7]
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.[8]
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.
0. “Dow ekes out gain, but Nasdaq and S&P 500 end lower after Microsoft’s disappointing outlook fuels recession fears” MarketWatch, 25 Jan. 2023, https://www.marketwatch.com/story/nasdaq-set-to-lead-market-lower-after-microsoft-forecasts-softer-demand-11674640349
1. “Stocks Close Higher, With Earnings and Economic Data in Focus” The Wall Street Journal, 26 Jan. 2023, https://www.wsj.com/articles/global-stocks-markets-dow-update-01-26-2023-11674735172
2. “Stocks Jump As Recession Fears Ease” Barchart, 26 Jan. 2023, https://www.barchart.com/story/news/13646645/stocks-jump-as-recession-fears-ease
3. “Stock market news live updates: Stock futures down ahead of more earnings, economic data” Yahoo News, 27 Jan. 2023, https://news.yahoo.com/stock-market-news-live-updates-january-27-2023-131503567.html
4. “Stocks Gain as Traders Turn Blind Eye to Mixed GDP: Markets Wrap” Yahoo! Voices, 26 Jan. 2023, https://www.yahoo.com/now/asia-trading-ramp-amid-upbeat-231842997.html
5. “Stocks Edge Lower, Intel, Chevron, Visa, Bed Bath & Beyond In Focus – Five Things To Know” TheStreet, 27 Jan. 2023, https://www.thestreet.com/markets/stocks-lower-intel-chevron-bed-bath-beyond-5-things-to-know
6. “Stock Market Today: Stocks Lower After Muted Inflation Data: Intel Slumps On Chip Sector Outlookv” TheStreet, 27 Jan. 2023, https://www.thestreet.com/markets/stock-market-today-stocks-mixed-on-muted-inflation-intel-slumps
7. “Dow Jones Futures: Market Rally Faces Big Test With Inflation Data Due; Intel Plunges | Investor’s Business Daily” Investor’s Business Daily, 27 Jan. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-tesla-drives-market-rally-to-test-intel-dives-inflation-report-due/
8. “Stock market news live updates: Stocks rally after strong GDP report, more earnings” Yahoo News, 26 Jan. 2023, https://news.yahoo.com/stock-market-news-live-updates-january-26-2023-130035690.html