Intel says chip shortage hit processor sales
Dow Jones Industrial Average futures rose 51 points, or 0.14%, while S&P 500 futures dropped 0.08% and Nasdaq 100 futures dropped 0.19%. The choppy session comes a day after the S&P closed at a record high as the Dow and Nasdaq ended within 1% of their own peaks.
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Among stocks, Intel Corp.’s revenue missed Wall Street’s estimates as global chip shortages resulted in weak sales of its processors. The company warned of low margins for the next several years as it seeks to roll out multiple generations of chipmaking technology by 2025.
Snap Inc. U.S. shares were sharply lower than analysts’ estimates following quarterly revenue declines as changes to Apple’s privacy settings adversely affected the social media company’s advertising business.
Other social media companies, including Facebook Inc. and Twitter Inc. weighed in on the results, as investors feared Apple’s changes could affect their results as well.
Elsewhere, Honeywell International Corp. lowered its full-year sales and profit forecasts amid concerns that supply chain constraints would strain its business. Earnings and revenue for the most recent quarter both topped expectations.
Chipotle Mexican Grill Inc. said higher menu prices spurred same-store sales. The burrito chain has increased prices three times since August 2020 in an effort to offset rising labor, freight and input costs.
Whirlpool Corp said supply chain disruptions are likely to continue well into next year and that supplies of dishwashers, refrigerators and other appliances will remain disrupted amid a period of strong consumer demand.
American Express Co. outperformed on both the top and bottom lines as consumer spending continued to bounce back after the easing of COVID restrictions.
In commodities, West Texas Intermediate crude jumped 58 cents to $83.08 a barrel, while gold rose $11.40 to $1,793.30 an ounce.
Foreign markets were mostly higher after Chinese real estate developer Evergrande made unexpected interest payments.
In European markets, Britain’s FTSE 100 rose 0.57%, Germany’s DAX 30 rose 0.76% and France’s CAC 40 gained 1%.
In Asia, Japan’s Nikkei 225 lost 0.34% and Hong Kong’s Hang Seng index lost 0.42% while China’s Shanghai Composite lost 0.34%.