Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Street
The Street
Business
Martin Baccardax

Stock Market Today: Stocks End Higher After Muted Inflation Data: Intel Slumps On Chip Sector Outlook

Stocks ended higher Friday, with tech stocks notably active, in spite of a grim quarterly update from Intel.

The Dow Jones Industrial Average finished up 28 points, or 0.08%, to 33,977, while the S&P 500 gained 0.25%. The tech-focused Nasdaq gained 0.95%.

Intel's surprise December quarter loss, paired with a less-than-stellar outlook for PC and data center sales, was quickly followed by reports the the U.S. has convinced Japan and the Netherlands -- home to chip-designing giant ASML -- to join it in limiting the export of high-end semiconductors to China.

The potential for another round of trade tensions between Washington and Beijing, just as the world's second-largest economy begins to ramp-up growth and investment following three years of pandemic restrictions, kept a lid on stocks overnight.

At the same time, traders are noting an important move higher in Treasury bond yields following yesterday's stronger-than-expected reading of fourth quarter GDP, which showed the U.S. economy advancing at a 2.9% clip, and the lowest tally of weekly jobless claims since May of last year.

The data has yet to alter rate hike forecasts for the Fed's two-day meeting next week in Washington, but alongside today's PCE Price index reading could provide fuel for policymakers who argue that inflation continues to run at unacceptably high levels in the world's biggest economy.

The Federal Reserve's preferred measure of U.S. inflation, in fact, slowed again in December, with the core PCE Index falling to 4.4% on an annualized basis as personal spending declined and income gains were muted.

The CME Group's FedWatch still suggests a 99.1% chance of a 25 basis point rate hike next week, with odds of a similar move in March pegged at 85%.

Benchmark 10-year Treasury note yields, meanwhile, were marked lower at 3.518% in New York trading following the PCE data while 2-year notes rose to 4.207%. The U.S. dollar index, which tracks the greenback against a baskets of its global peers, was marked 0.1% higher at 101.94.

In terms of individual stocks, Intel (INTC) shares fell 6.4% after the chipmaker post a surprise fourth quarter loss and said lingering weakness in PC demand would pressure margins and clip near-term earnings.

Visa (V) shares rose 3% after the world's biggest credit card company posted better-than-expected first quarter earnings thanks in part to a surge in cross-border spending amid the ongoing travel boom.

American Express (AXP), meanwhile, surged 10.6% after it forecast solid profit and revenue growth, along with a dividend boost, that offset weaker-than-expected fourth quarter earnings. 

Hasbro (HAS) shares slumped 8.1%  after the toy and games maker said it would slash around 15% of its global workforce and warned that a disappointing holiday season would see it post softer-than-expected fourth quarter earnings.

Chevron (CVX) shares slipped 4.4% after the oil major posted softer-than-expected fourth quarter earnings just days after unveiling plans for a $75 billion buyback. 

In overseas markets, Europe's Stoxx 600 closed 0.11% higher in Frankfurt trading, while Asia's region-wide MSCI ex-Japan index touched a fresh seven-month high, rising 0.16%, as markets in China re-opened following the five-day Lunar New Year holidays.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.