US stocks were mixed Friday, stalling late in the session after a relentless upward 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 stronger-than-expected 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 4,544.60, up 1.6% on the week after closing at a record Thursday.
The Nasdaq Composite dropped 0.8% to 15,090.20, with Facebook (FB) down about 5% while Google (GOOG) and Amazon (AMZN) shed 2.9% each following Snap's (SNAP) concerns about online advertising, which sent its stock 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 year earlier, while spending by Millennial and Gen Z cardholders rose 38% over the same time 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 5.4%.
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. It also lowered the longer-term margin guidance as the company embarks on aggressive investments in manufacturing. Shares slumped 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 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.
Natural gas gained $0.20 to $5.31 per million BTU. Bitcoin fell 2.6% to $61,001.