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©Reuters. FILE PHOTO: Traders work at the New York Stock Exchange (NYSE) in New York City, U.S., November 29, 2016. REUTERS/Brendan McDermid/File Photo
By Noel Randewich and Ankika Biswas
(Reuters) – A run of five consecutive sessions of record highs ended on Friday, with Intel (NASDAQ) falling after gloomy revenue forecasts, while U.S. economic data showed inflation moderating.
All three major indexes recorded their third consecutive weekly gain and their 12th out of 13 weekly advances.
A report from the US Commerce Department showed that the personal consumption expenditure index – the Federal Reserve’s preferred inflation gauge – rose moderately in December. That kept the annual rise in inflation below 3% for the third straight month and strengthened the case for rate cuts this year.
Data on Thursday showed strong US economic growth in the fourth quarter.
“These are good numbers,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “Taken in light of yesterday’s GDP data, this report reinforces the possibility of a soft landing, which continues to gain traction.”
According to preliminary data, the S&P 500 lost 4.09 points, or 0.08%, to close at 4,890.07 points, while the Nasdaq Composite lost 55.13 points, or 0.36%, to 15,454.89 . The Dow Jones Industrial Average rose 56.15 points, or 0.15%, to 38,105.28.
Intel sank to a six-week low after providing a revenue forecast that narrowly missed estimates as it tries to catch up in the artificial intelligence race while also facing a weak PC market.
Chipmaking tool maker KLA Corp fell following disappointing third-quarter revenue forecasts.
The price fell for a second day after closing at a record high on Wednesday.
The S&P 500 has returned to record highs in recent sessions for the first time in two years, extending a rally driven by optimism about the economy and lower interest rates, as well as bets on artificial intelligence.
American Express (N:) hit a record high after the credit card company forecast a better-than-expected annual profit. Visa (NYSE:) fell after the world’s largest payments processor reported tepid revenue growth forecasts for the current quarter.
Apple (NASDAQ:) fell ahead of its quarterly report next Thursday. The iPhone maker and Intel were among the stocks weighing the most on the S&P 500.
Of S&P 500 companies that have reported earnings so far, 78.2% have beat expectations, LSEG data showed, compared with a long-term average beat rate of 67%.
The S&P 500 and Nasdaq are up about 3% so far in 2024.
Colgate-Palmolive (NYSE:) rose after the toothpaste maker posted upbeat fourth-quarter results.