Stock futures held lower Friday as a tepid sales outlook from
Intel
had traders pushing equities lower even as the Federal Reserve’s preferred inflation metric revealed price pressures eased markedly in December.
These stocks were poised to make moves Friday:
Intel
was falling 9.5% 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.
Shares of other chip makers followed Intel lower.
Advanced Micro Devices
fell 1.9%,
Nvidia
was down 0.5%,
Broadcom
declined 0.7%, and
Qualcomm
fell 1.1%.
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 2.9%.
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 3.7%.
American Express
reported fourth-quarter earnings of $2.62 a share on revenue of $15.8 billion. The company said it expects revenue in 2024 to increase 9% to 11% with earnings of $12.65 to $13.15 a share.
American Express
said demand for its premium products “remained robust.” Shares rose 1.4%.
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 2.7%.
T-Mobile
‘s fourth-quarter earnings missed analysts’ estimates and the stock was down 2.1%. 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 1.5% to $185.43.
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 0.3% to $403.73.
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 3.1% to $16.80.
Levi Strauss
was down 1.1% 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.
Write to Joe Woelfel at [email protected]
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