Stocks fall slightly as Intel's outlook cools engineers

Intel's pessimistic outlook sent stocks lower on Friday as investors analyzed key inflation indicators that could influence the timing of interest rate cuts.

The S&P 500 () has slipped just below the flatline after the benchmark ended at a new record high. The Dow Jones Industrial Average () was little changed, while the tech-heavy Nasdaq Composite Index () fell 0.2%.

Tech stocks led the decline after Intel (INTC)'s first-quarter outlook fell far short of Wall Street expectations, slightly eroding the AI-fueled hopes that had propelled the stock to all-time highs. . Intel stock fell more than 10% in premarket trading, with peers AMD (AMD) and Nvidia (NVDA) also down slightly.

However, the release of the PCE index in December painted a rosy picture of inflation for investors. Core PCE, a measure of inflation commonly known as the Fed's preferred measure, fell below 3% annually, its slowest growth rate since March 2021.

The numbers, combined with a better-than-expected preliminary report on fourth-quarter U.S. GDP, could further strengthen the view that the U.S. economy is headed for a “soft landing.”

Central bankers are scheduled to meet next week for their first policy meeting of the year. Policy interest rates are widely expected to remain stable. But a recent set of positive economic data means it is likely to start cutting rates later this year, perhaps as early as March.

read more: Impact of the Fed's interest rate hike suspension on bank accounts, CDs, loans, and credit cards

At the same time, investors will be watching the next earnings report for further insight into the health of American companies and the economy. Colgate-Palmolive (CL) was a highlight on Friday, with American Express (AXP) also in the spotlight, especially after payment card rival Visa (V) posted a lackluster earnings growth forecast. There is.

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Friday, January 26, 2024 at 7:00 a.m. PST

Spirit shares fall as JetBlue warns merger deal may be terminated on Sunday

Shares of Spirit Airlines (SAVE) fell as much as 17% on Friday morning after JetBlue Airways (JBLU) told the low-cost airline that its merger deal could be terminated on January 28th.

JetBlue shares rose more than 2% after the airline warned that certain conditions may not be met for a shutdown required by the deal. The Long Island City, New York-based company said it will continue to evaluate its options under the agreement.

The development makes Spirit Airlines' $3.8 billion sale to JetBlue (JBLU) less likely to go through after a court ruling last week blocked the merger citing antitrust concerns.

Both companies subsequently filed an appeal of the federal judge's ruling.

Last week, Spirit announced it was considering ways to restructure its debt and raised its operating margin forecast for the fourth quarter.
Friday, January 26, 2024 6:37 a.m. PST

Stocks were mixed in morning trading.

Intel (INTC)'s pessimistic outlook sparked Friday morning as investors take stock of the latest optimistic inflation numbers and how they will affect the timing of the Fed's first interest rate cut of the cycle. The stock prices were mixed.

The S&P 500 (^GSPC) rose 0.1% after Thursday's win saw the benchmark close at another all-time high. The Dow Jones Industrial Average (^DJI) was little changed, while the tech-heavy Nasdaq Composite Index (^IXIC) was down 0.2%.