US stocks closed mixed Friday, stalling late in the session after a relentless grind to new records over recent days.
The Dow Jones Industrial Average still closed at an all-time high, rising 0.2% to 35,677.02 as the gain by American Express (AXP) following upside quarterly earnings countered Intel's (INTC) plunge after the chip maker issued disappointing fourth quarter profit guidance.
The S&P 500 snapped a seven-session winning streak to finish 0.1% lower at 4,544.90, up 1.6% on the week after closing at a record Thursday.
The Nasdaq dropped 0.8% to 15,090.20, with Facebook (FB) down 5% while Google (GOOG) and Amazon (AMZN) shed 2.9% apiece following Snap's (SNAP) icy online advertising forecast, which sent that social media stock nearly 27% lower.
The 10-year US Treasury yield slipped 2 basis points to 1.66%, just off a five-month high.
West Texas Intermediate crude oil rose $1.50 to $84 per barrel, a seven-year high.
American Express topped earnings and revenue estimates on card spending that was up 19% in the quarter from two years earlier, while spending by Millennial and Gen Z cardholders rose 38% over the same span. "We also saw a continued rebound in travel and entertainment spending, with restaurant spending notably resilient, growing above pre-pandemic levels in the quarter," the company said. Shares rose 5.5%.
Intel noted the widespread supply chain blockages in providing its downbeat outlook, saying its customers could not secure a sufficient supply of integrated circuits amid shortages, lowering demand for its complementary chips. But it also lowered the longer-term margin guidance as the company embarks on aggressive investments in manufacturing. Shares fell nearly 12%.
"While Intel is doing the right thing in lifting investment to try and restore manufacturing and product supremacy, the required increase in spending over the next few years will necessarily weigh heavily on company results, particularly with the company's share (and [average selling prices]) suffering from current competitive dynamics," said Wedbush in a research note, lowering Intel's share price target to $45 from $50 while sticking with the underperform rating.
Supply chain pain extended spread to cyberspace Friday with Snap's CEO saying potential advertisers are currently more focused on locating labor and supply to meet demand than on attracting new customers.
Longtime highs in energy prices fueled Schlumberger's (SLB) bullish outlook for 2022 after the oilfield services giant met third-quarter earnings estimates while falling shy on revenue that was up 11% year over year.
"The industry macro fundamentals have visibly strengthened this year, particularly in recent weeks -- with demand recovery, oil and gas commodity prices at recent highs, low inventory levels, and encouraging trends in pandemic containment efforts," Schlumberger CEO said. "Absent a recession or pandemic-related setback, these favorable conditions are expected to materially drive investment over the next few years-particularly internationally-and result in exceptional multiyear capital spending growth globally, both on land and offshore."
Natural gas gained $0.20 to $5.31 per million BTU.
Recent gains in used car prices driven by a shortage of new autos amid semiconductor supply shortfalls and likely increases in airfares in the month ahead are likely to push core annual inflation to about 6% at its peak in January or February, said Ian Shepherdson of Pantheon Macro in a research note. "If unit labor costs remain controlled, the 'transitory' story is sustainable, but expect pressure on the Fed," he wrote.