Market participants failed to make big moves Friday as Wall Street looks ahead to next week's Federal Reserve meeting. Still, there was plenty of news hitting the wires, including the latest inflation update and another round of corporate earnings reports.
Ahead of the open, the Bureau of Economic Analysis said the Personal Consumption and Expenditures (PCE) index, the Fed's favorite inflation indicator that measures consumer spending, was up 0.2% month-over-month in December, well above the 0.1% decline from November. The 2.6% annual rise matched what was seen the month prior.
The monthly increase (+0.2%) in core PCE, which excludes volatile food and energy prices, was also higher than December, though the year-over-year rise (2.9%) was lower than than the previous month.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"Given how much inflation slowed over the last few months," a rate cut in March is not out of the question, says Bill Adams, chief economist for Comerica Bank. "But the Fed is more likely to wait until the second quarter to begin reducing interest rates."
Today's PCE data also showed that consumer spending rose 0.7% from November to December, exceeding economists' forecast for 0.5% growth. "All things considered, it's another sign that the U.S. consumer and economy are in very healthy shape going into the new year," says Craig Erlam, senior market analyst at OANDA.
Intel sheds $25 billion in market value after earnings
In single-stock news, Intel (INTC) plunged 11.9% – losing $25 billion in market value along the way – after the chipmaker disclosed its fourth-quarter results. While Intel beat on both the top and bottom lines in Q4, its first-quarter guidance came in woefully short of Wall Street's estimates.
Specifically, the company said it anticipates first-quarter earnings of 13 cents per share on revenue ranging between $12.2 billion and $13.2 billion. Analysts, meanwhile, forecast earnings of 33 cents per share on $14.2 billion in sales.
In the company's earnings call, Intel CEO Pat Gelsinger cited "discrete headwinds" such as Mobileye Global's (MBLY, +1.5%) "sharp inventory correction" as reason for the lower guidance, but said these 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, second only to Salesforce (CRM, +0.3%). It's down 13% so far in 2024, behind only Boeing (BA, +1.8%) and its 21% decline as the worst Dow stock of the year.
Other big earnings movers included American Express (AXP), which jumped 7.1% after the credit card giant gave upbeat full-year guidance, and Colgate-Palmolive (CL), which gained 2.0% after the consumer products company reported a top-line beat.
At the close, the Dow Jones Industrial Average was up 0.2% at 38,109, while the S&P 500 (-0.07% at 4,890) and the Nasdaq Composite (-0.4% at 15,455) were modestly lower.
Fed, Big Tech earnings on deck
This upcoming week could be a volatile one. In addition to the next Fed meeting, the December jobs report is due out Friday morning.
Plus, Big Tech dominates the earnings calendar, with Alphabet (GOOGL, +0.2%) and Apple (AAPL, -0.9%) among those reporting.
Related content
- Starbucks 2024 Deals: BOGO Weekends, $3 Drinks, Triple Stars
- Costco Cracks Down on Membership Card Sharing
- S&P 500 Dividend Aristocrats: Who's Out, Who's In
-
Do You Really Need That Wine Cellar?Home Features Wine cellars are a popular feature in high-end houses. Will installing one in your home increase its value, or would you be better off with a cheaper solution?
-
Think a Repeal of the Estate Tax Wouldn't Affect You? WrongThe wording of any law that repeals or otherwise changes the federal estate tax could have an impact on all of us. Here's what you need to know, courtesy of an estate planning and tax attorney.
-
Stock Market Today: Investors Look on the Bright SideA generally good week closes on another positive note, as investors, traders and speculators look for fresh catalysts.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Stock Market Today: Stocks Climb More Walls of WorryVolatility is back in a normal range, and the trend for the main equity indexes remains positive despite specific and general headwinds.
-
Is It Time to Invest in Europe?Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Stock Market Today: Nasdaq Outperforms as Big Tech RalliesThe Dow Jones Industrial Average closed lower for a second day as Amgen and Merck fell.
-
Stock Market Today: UnitedHealth Drags on Dow After CEO SplitsUNH created headwinds for the price-weighted Dow on news that its embattled CEO, Andrew Witty, is stepping down.
-
Stock Market Today: Dow Gains 1,160 Points on U.S.-China Trade DealThe two countries agreed to a 90-day truce that will give them time to work on more substantive trade negotiations.
-
Stock Market Today: Investors Weigh Weekend NegotiationsInvestors, traders and speculators will look to Switzerland for answers about the most compelling issue confronting global markets.
