U.S. Stocks May Give Back Ground Amid Steep Drop By Intel

Stocks may move to the downside in early trading on Friday, giving back ground after trending higher over the past several sessions. The major index futures are currently pointing to a modestly lower open for the markets, with the S&P 500 futures down by 0.2 percent.

A steep drop by shares of Intel (INTC) is likely to weigh on the markets, with the semiconductor giant plunging by 9.8 percent in pre-market trading,

Intel is under pressure after reporting better than expected fourth quarter results but providing disappointing first quarter guidance.

Payments processor Visa (V) may also move to the downside after reporting fiscal first quarter earnings that beat estimates but forecasting a slowdown in revenue growth in the current quarter.

Meanwhile, shares of American Express (AXP) are likely to see initial strength after the financial services company reported fourth quarter results that missed estimates but forecast strong results in 2024.

The futures remained in the red even after the Commerce Department released a report showing a bigger than expected slowdown in the annual rate of core consumer price growth in the month of December.

The Commerce Department said consumer prices in December were up by 2.6 percent compared to the same month a year ago, unchanged from November and in line with economist estimates.

Meanwhile, 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 readings, which are said to be preferred by the Federal Reserve, were included in the Commerce Department’s monthly report on personal income and spending.

Not long after the start of trading, the National Association of Realtors is scheduled to release its report on pending home sales in the month of December. Pending home sales are expected to jump by 1.5 percent in December after coming in…