U.S. Close Mixed As Traders Weigh Intel Guidance Against Inflation Data

After trending higher over the past several sessions, stocks turned in a relatively lackluster performance during trading on Friday. The major averages bounced back and forth across the unchanged line before eventually closing narrowly mixed.

While the S&P 500 edged down 3.19 points or 0.1 percent to 4,890.97 and the Nasdaq fell 55.13 points or 0.4 percent to 15,455.36, the narrower Dow rose 60.30 points or 0.2 percent to a new record closing high of 38,109.43.

Despite the mixed performance on the day, the major averages all moved higher for the week. While the S&P 500 jumped by 1.1 percent, the Nasdaq advanced by 0.9 percent and the Dow climbed by 0.7 percent.

The choppy trading on Wall Street came as traders weighed disappointing earnings news from semiconductor giant Intel (INTC) against tamer than expected consumer price inflation data.

Shares of Intel plunged by 11.9 percent after the company reported better than expected fourth quarter results but provided disappointing first quarter guidance.

Meanwhile, the Commerce Department released a report before the start of trading showing a bigger than expected slowdown in the annual rate of core consumer price growth in the month of December.

The report said the annual rate of growth by core consumer prices, which exclude food and energy prices, slowed to 2.9 percent in December from 3.2 percent in November. Economists had expected core price growth to decelerate to 3.0 percent.

The annual inflation reading, which is said to be preferred by the Federal Reserve, was included in the Commerce Department’s monthly report on personal income and spending.

“Today’s inflation report gives the Fed a path to cut interest rates,” said Larry Tentarelli, Chief Technical Strategist, Blue Chip Daily Trend Report. “Based on strong recent GDP data and jobs data, we expect the first rate cut to be in the May-June period.”

He added, “If jobs and or economic data softens a bit and inflation continues to drop quickly, that could increase…