Wall Street Today | Stocks Pause Blistering Rally as Intel Drags Semiconductors Lower

The US stock market took a breather from its blistering rally as disappointing financial results from $Intel(INTC.US)$dragged down the semiconductor sector, muting gains in financial stocks.

The $S&P 500 Index(.SPX.US)$ fell less than 0.1% Friday, while $Nasdaq Composite Index(.IXIC.US)$ slipped 0.4%. The $Dow Jones Industrial Average(.DJI.US)$ gained 0.2%.

Semiconductor stocks tracked by moomoo fell 1.9%, becoming Friday's worst performing sector. Intel was the biggest loser on the S&P 500, followed by semiconductor equipment maker $KLA Corp(KLAC.US)$. The decline also dragged the tech-heavy Nasdaq, with $GlobalFoundries(GFS.US)$ earning the spot as the third-worst performer on the gauge. $Applied Materials(AMAT.US)$ and $Microchip Technology(MCHP.US)$ also joined that list.

$Intel(INTC.US)$ shares tumbled 12% after the company provided a worse-than-expected revenue outlook. Baird's analyst Tristan Gerra highlighted challenges for Intel's data-center and artificial-intelligence unit. He expects the unit to see its revenue slump to a 14-year low, MarketWatch reported.

JetBlue's Warning for Spirit Airlines

$Spirit Airlines(SAVE.US)$ shares tumbled after $JetBlue Airways(JBLU.US)$ signaled its deal to acquire the low-cost carrier may be terminated as the companies miss the deadline for closing the transaction. A federal judge had earlier blocked the deal.

$American Express(AXP.US)$ shares rose more than 7% after the credit card company issued a better-than-expected profit outlook for 2024. The company expects its earnings to reach $12.65 to $13.15 per share. Analysts surveyed by Capital IQ forecast EPS of $12.32, MT Newswires reported. AMEX, as the credit card issuer is known, also sees revenue growth of 9% to 11% for the year, according to its press release Friday. It gave investors more good news -- its plan to increase quarterly dividend by 17% to 70 cents per common share. Meanwhile, shares of rival $Visa(V.US)$ slipped 1.4%.

$Capital One Financial(COF.US)$ shares advanced Friday amid analysts' optimism on the prospects of the diversified bank that reported higher-than-expected fourth quarter revenue. RBC raised its price target on Capital One Financial to $142 from $140, encouraged by management's confidence in the outlook, while keeping its rating on the stock to sector perform, MT Newswires reported.