Market participants failed to make any big moves on Friday as Wall Street awaits next week's Federal Reserve meeting. Still, there was plenty of news on the wires, including the latest inflation update and another round of corporate results reports.
Before the opening, the Office of Economic Analysis said the Personal Consumption and Expenditure (PCE) index, the Federal Reserve's favorite inflation gauge that measures consumer spending, rose 0.2% month over month in December, well above the 0.2% decline. ,November 1st. The annual increase of 2.6% coincided with what was observed the previous month.
The monthly increase (+0.2%) of the core PCE, which excludes the volatile food and energy Prices were also higher than in December, although the year-on-year increase (2.9%) was lower than the previous month.
'Given how much inflation has slowed in recent months', a rate cut in March not out of the question, says Bill Adams, chief economist at Comerica Bank. "But the Federal Reserve is more likely to wait until the second quarter to start tapering Interest rates".
Today's PCE data also showed that consumer spending rose 0.7% from November to December, beating economists' forecast for 0.5% growth. "All things considered, it's another sign that the US consumer and economy are in very good shape heading into the new year," he says. Craig Erlamsenior market analyst at OANDA.
Intel loses $25 billion in market value after its results
singlestock market news Intel (INTC) plummeted 11.9% โ losing $25 billion in market value along the way โ after the chipmaker revealed its fourth-quarter results. While Intel beat both results and revenue in the fourth quarter, its guidance for the first quarter fell woefully short of Wall Street estimates.
Specifically, the company said it anticipates first-quarter earnings of 13 cents per share on revenue ranging from $12.2 billion to $13.2 billion. Meanwhile, analysts forecast earnings of 33 cents per share on $14.2 billion in sales.
in the companyearnings call Intel CEO Pat Gelsinger cited "soft headwinds," such as Mobileye Global (MBLY, +1.5%) "strong inventory correction" as reason for the lower guidance, but said they will likely be "temporary." Intel is the majority owner of Mobileye, which makes chips and software that enable autonomous driving capabilities and advanced driver assistance systems (ADAS).
Intel was one of the best. Dow Jones Stocks of 2023, only surpassed by Sales force (CRM, +0.3%). It is down 13% so far in 2024, only behind boeing (licensed in letters+1.8%) and its 21% drop as a result worst Dow Stock of the Year.
Other big profit drivers include American Express (AXP), which rose 7.1% after the credit card giant gave optimistic guidance for the full year, and Colgate-Palmolive (CL), which gained 2.0% after the consumer products company reported improved revenue.
At closing, the Dow Jones Industrial Average rose 0.2% to 38,109, while the S&P 500 (-0.07% to 4,890) and the Nasdaq Composite (-0.4% to 15,455) were modestly lower.
Federal Reserve and Big Tech profits at stake
Next week could be volatile. In addition to next Fed meetingDecember jobs The report will be published on Friday morning.
Furthermore, Big Tech dominates the earnings schedulewith Alphabet (GOOGLE+0.2%) and Apple (AAPL-0.9%) among those who reported.
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