Stock market news live updates: Stocks rally, Intel craters, as inflation data cools

U.S. stocks rallied on Friday, after slipping earlier at the open, as investors weigh in on fresh economic data including consumer spending data, a closely watched measure by the Federal Reserve.

The S&P 500 (^GSPC) added 0.2%, while the Dow Jones Industrial Average (^DJI) ticked up 0.08%. The technology-heavy Nasdaq Composite (^IXIC) was up roughly 1%, closing out its best week since November.

The biggest mover on Friday were shares of Intel (INTC), which fell as much as 10% on Friday after the company’s bleak outlook disappointed.

Intel reported a quarterly earnings miss after the close Thursday, adjusted earnings per share coming in at $0.10 against the $0.19 expected by the Street. Revenue totaled $14.04 billion, below estimates for $14.5 billion.

In the first quarter, Intel expects revenues to come in between $10.5-$11.5 billion, with losses totaling $0.80 per share. In delivering these results, CEO Pat Gelsinger cited “economic and market headwinds,” adding the company, “will continue to navigate the short-term challenges while striving to meet our long-term commitments.”

Elsewhere in markets, Tesla (TSLA) stock has become hot. The shares rose above 10% in Friday trading, eyeing its best week since May 10, 2013. The company’s latest earnings has prompted a boost for the shares. Separately, CEO Elon Musk is being investigated by US regulators in his role shaping the carmaker’s self-driving car claims, Bloomberg reported.

Lucid (LCID) stock surged Friday on reports that a Saudi Arabia’s Public Investment Fund could be planning a takeover and buying shares the EV maker doesn’t already own.

The yield on the benchmark 10-year U.S. Treasury note ticked up to 3.52% from 3.497% on Thursday. The dollar index was little changed. WTI crude oil sank 2% to trade at $79.41 a barrel.

U.S. core personal-consumption expenditures price index (PCE), excluding energy and food, rose 0.3% month-over-month, while the annual rate fell to a one-year low of 4.4% in December from 4.7% the prior month, in line with consensus forecasts.

Pending home sales increased 2.5% in December, ending a sixth month slide, according to the National Association of Realtors.

Meanwhile, consumers remain optimistic. The consumer sentiment index rose to 64.9, a slight increase from 64.6 reading two weeks ago, according to preliminary results from the University of Michigan’s consumer survey. Economists surveyed were expecting a reading of 64.6.

Stocks rallied on Thursday as investors digested other data that showed the U.S. economy ended the year on a solid foot despite higher interest rates and recessionary fears looming.

Gross Domestic Product (GDP) — the sum of all goods and services – expanded at a 2.9% annual pace in the final quarter of 2022. For the full year, GDP grew 2.1%.

Durable-goods orders in December increased by 5.6% topping expectations for 2.4%, the sharpest gain since July 2020. Meanwhile, the resilience of the U.S. job market has been a major surprise. Initial jobless claims fell again to 187,000, the lowest level since April 2022.

“Markets deciphered a lot of mixed clues [on Thursday] and, after some cause for concerns, decided that it was easier to shrug it all off and drive equities to fresh 2023 highs,” Jim Reid and colleagues at Deutsche Bank wrote in an early morning note Friday morning. “Earnings also helped the mood, to be fair.”

Visa (V) shares were higher Friday after the company reported results late Thursday. Revenue increased to $7.94 billion compared to expectations of $7.69 billion. And adjusted earnings per share came in at $2.18 versus estimates of $2.00. The company announced that Ryan McInerney will be stepping in as chief executive officer starting February 1st.

Hasbro (HAS) also joined the wave of company layoffs announcing it will cut its workforce by 15 percent, or 1,000 employees, effective in the coming weeks. The move comes as the toymaker seeks to save around $250 million and $300 million annually by the end of 2025.

Also in stock moves, Chevron (CVX) shares were down after reporting fourth quarter profit of $6.4 billion, down from the $11.2 billion in the third quarter. Ahead of Friday’s report Chevron, announced it was hiking its dividend by 6% along with massive $75 billion share repurchase plan.

Shares of American Express (AXP) rose after the credit card company reported fourth quarter net income of $1.57 billion. On a per-share basis, it had a profit of $2.07. American Express expects full-year earnings to be $11 to $11.40 per share.

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