Stock futures declined Friday as a tepid sales outlook from
Intel
had traders pushing equities lower ahead of the release of the Federal Reserve’s favorite inflation measure, the personal consumption expenditures price index. The
S&P 500
closed Thursday at a fifth-straight record high.
These stocks were poised to make moves Friday:
Intel
was falling 11% after the semiconductor company issued a revenue forecast for the first quarter that was significantly below analysts’ expectations. Intel said it expects revenue in the period of $12.2 billion to $13.2 billion, below consensus of $14.2 billion. The company forecast adjusted earnings in the first quarter of 13 cents a share, below analysts’ estimates of 34 cents. Chief Executive Pat Gelsinger said Intel’s forecast was taking a hit from struggles in the company’s programmable-chip unit and its autonomous-driving business.
Western Digital
reported a fiscal second-quarter adjusted loss of 69 cents a share, narrower than analysts’ estimates that called for a loss of $1.12. Revenue fell 2% to $3.03 billion from $3.11 billion in the year-earlier quarter. Cloud revenue fell 13%.
Western Digital
issued third-quarter sales guidance of $3.2 billion to $3.4 billion, compared with analysts’ expectations of $3.15 billion. Shares declined 4.8%.
KLA Corp.,
which makes equipment for the semiconductor industry, reported fiscal second-quarter profit of $582.5 million, or $4.28 a share, compared with $978.8 million, or $6.89 a share, a year earlier. Revenue fell to $2.49 billion from $2.98 billion a year earlier. KLA said it expects fiscal third-quarter revenue of $2.3 billion, plus or minus $125 million, versus expectations of $2.45 billion. KLA shares declined 6.2%.
Visa
reported adjusted first-quarter earnings of $2.41 a share, better than forecasts of $2.34 as revenue rose 9% to $8.63 billion.
Visa
said payments volume rose 8% and processed transactions rose 9% in the period. The company reiterated its revenue and per-share profit forecast for the fiscal year. The stock was down 3.3%.
T-Mobile
‘s fourth-quarter earnings missed analysts’ estimates and the stock was down 3.1%. The telecommunications company added 934,000 postpaid phone subscribers in the quarter, more than the 927,000 it added a year earlier and higher than analysts’ estimates of 878,000.
Tesla
fell 12% on Thursday to $182.63, the stock’s largest percent decrease since Jan. 3, 2023, after the electric-vehicle maker warned of slowing growth in 2024. In premarket trading Friday,
Tesla
was rising 0.8% to $184.20.
Microsoft
surpassed the $3 trillion market cap level on Thursday for the first time on a closing basis, joining
Apple
as the only other U.S. company to ever reach that milestone.
Microsoft
closed Thursday at $404.87. In premarket trading Friday, the stock was down 0.4% to $403.10.
Snap
was raised to Buy from Hold at
Deutsche Bank
and the price target was raised to $19 from $10. Shares of the
Snapchat
parent rose 2.9% to $16.76.
Levi Strauss
was down 1.7% after the jeans maker said it would lay off between 10% and 15% of its global corporate staff in the first half of the year, and said it expects fiscal-year adjusted earnings of $1.15 to $1.25 a share, below analysts’ forecasts for $1.33.
Earnings reports are expected Friday from
American Express,
Colgate-Palmolive,
and
Norfolk Southern.
Write to Joe Woelfel at [email protected]
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