Hey there, readers!
It's been an eventful week in the world of stocks and technology. Big tech companies have been thriving, bringing positive energy to the stock market. However, there's always a party pooper, and this time it's Intel. The chip maker's stock took a nosedive, plunging nearly 12% after releasing disappointing sales forecasts.
Now, Intel usually experiences a seasonal drop in business during the first quarter compared to the fourth, but this time the forecast was pretty brutal. Heard on the Street columnist Dan Gallagher explains that the company blamed the outlook on a mix of factors, including seasonal declines in its core business units and an inventory pileup at auto-chip maker Mobileye.
Unfortunately, Intel's selloff dragged down other chip makers as well. Advanced Micro Devices, Nvidia, and Micron Technology all saw their stock prices edge lower.
In other news, Spirit Airlines faced a setback as JetBlue warned that it might end its attempted takeover of the company. JetBlue informed Spirit that certain conditions required to close the deal may not be met by the airlines' deadline. This news caused shares of Spirit Airlines to drop.
Turning our attention to economic data, the Federal Reserve's preferred inflation gauge showed that price pressures remained mostly subdued in December. The Commerce Department reported that consumer prices rose 0.2% in December from November, putting it 2.6% above the previous year's level. With inflation at bay, the Fed's decision on when to cut rates will likely depend on what the job market is signaling, as emphasized by Heard on the Street columnist Justin Lahart.
As for the stock market, it finished the week with mixed results. The S&P 500 slipped 0.1%, the Nasdaq ended down 0.4%, and the Dow closed up 0.2% or 60 points. Despite the mixed performance, all three indices logged gains for the week.
That's all for now, folks! Stay tuned for more updates on the market and tech world.
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