U.S. Stocks May Give Back Ground On Disappointing Intel Earnings

(RTTNews) - Following the rally seen over the course of the previous session, stocks may move back to the downside in early trading on Friday. The major index futures are currently pointing to a lower open for the markets, with the S&P 500 futures down by 0.4 percent.

A negative reaction to earnings news from Intel (INTC) is likely to weigh on Wall Street, with the semiconductor giant plunging by 9.8 percent in pre-market trading.

The steep drop by Intel comes after the company reported weaker than expected fourth quarter results and forecast a loss for the current quarter.

Energy giant Chevron (CVX) may also give back ground after yesterday's surge after reporting fourth quarter earnings that missed analyst estimates.

Meanwhile, shares of American Express (AXP) are likely to see initial strength after the credit card giant reported weaker than expected fourth quarter results but provided upbeat guidance for 2023 and increased its dividend.

Overall trading activity may be somewhat subdued, however, as traders look ahead to next week's Federal Reserve meeting.

With the Fed widely expected to slow the pace of interest rate hikes to 25 basis points, traders will pay close attention to the accompanying statement for clues about the outlook for further rate hikes.

On the U.S. economic front, the Commerce Department released a report showing personal income increased in line with economist estimates in the month of December.

The report said personal income inched up by 0.2 percent in December after rising by a downwardly revised 0.3 percent in November.

Economists had expected personal spending to edge up by 0.2 percent compared to the 0.4 percent increase originally reported for the previous month.

Meanwhile, the Commerce Department said personal spending dipped by 0.2 percent in December after slipping by 0.1 percent in November. The modest decrease matched economist estimates.

The report also showed the annual rate of growth in core consumer prices, which exclude food and energy prices, slowed to 4.4 percent in December from 4.7 percent in November. Not long after the start of trading, the University of Michigan is scheduled to release its revised reading on consumer sentiment in the month of January. The consumer sentiment index is expected to be unrevised from the preliminary reading of 64.6.

The National Association of Realtors is also due to release its report on pending home sales in the month of December. Pending home sales are expected to decrease by 0.9 percent in December after plunging by 4.0 percent in November.

Stocks fluctuated early in the session on Thursday but moved mostly higher over the course of the trading day. With the upward move, the tech-heavy Nasdaq jumped to a four-month closing high, while the S&P 500 reached its best closing level in over a month.

The major averages saw further upside going into the close, ending the session at their best levels of the day. While the Nasdaq surged 199.06 points or 1.8 percent to 11,512.41, the S&P 500 shot up 44.21 points or 1.1 percent to 4,060.43 and the Dow climbed 205.57 points or 0.6 percent to 33,949.41.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Friday. Japan's Nikkei 225 Index inched up by 0.1 percent, while Hong Kong's Hang Seng Index rose by 0.5 percent.

The major European markets have shown modest moves to the downside on the day. While the U.K.'s FTSE 100 Index is just below the unchanged line, the German DAX Index is down by 0.2 percent and the French CAC 40 Index is down by 0.3 percent.

In commodities trading, crude oil futures are jumping $0.96 to $81.97 a barrel after climbing $0.86 to $81.01 a barrel on Thursday. Meanwhile, after sliding $12.60 to $1,930 an ounce in the previous session, gold futures are inching up $2.50 to $1,932.50 an ounce.

On the currency front, the U.S. dollar is trading at 129.68 yen versus the 130.22 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0872 compared to yesterday's $1.0892.