Intel reported a loss of $454 million in the second quarter after a posting a profit in the same period a year earlier.
The chipmaker posted revenue of $15.32 billion in the second quarter, falling short of Wall Street expectations as analysts were expecting $17.92 billion.
The California-based company said it had a loss of 11 cents per share while earnings, when adjusted for one-time gains and costs, came in at 29 cents per share.
Amazon shares are trending higher in after-hours trading after beating Wall Street sales estimates. The online retailer said net sales rose 7% to $121.2 billion in the second quarter. Analysts expected $119.09 billion, according to IBES data from Refinitiv.
The company lost $2 billion, or $0.20 per diluted share compared to a year ago profit of $7.8 billion, or $0.76 per diluted share. The current loss included a $3.9 billion pre-tax valuation loss from the company’s stock investment in electric vehicle maker Rivian Automotive.
U.S. stocks rallied across the board 1%+ despite confirmation the economy is in the midst of a recession after a surprise 2Q GDP contraction of 0.9%. Utilities and industrials led the S&P’s gains, while communications companies lagged. In commodities, oil fell 0.8% to $96.42 per barrel.
{{#rendered}}EPB Macro Research founder Eric Basmajian and LGIM America Senior Solutions Strategist Anthony Woodside provide insight on the state of the economy on 'Making Money.'
Speaker Pelosi just announced on the floor that the House passed the CHIPS and Science Act of 2022 on a bipartisan basis with 24 Republicans voting in favor.
The final breakdown of the House vote was 243 yes, 187 no, 1 Democrat voted present.
{{#rendered}}George Washington adjunct professor of economics Diana Furchtgott-Roth and University of Maryland economist Peter Morici discuss if the new spending bill will make a bad inflationary situation worse on 'Cavuto: Coast to Coast.'
{{#rendered}}Former U.S. Transportation Secretary Elaine Chao discusses the Democrats' spending package as the country enters recession, the travel surge amid worker shortages and the Jan. 6th committee.
{{#rendered}}President Biden and his team will discuss the economy at 2:15 pm ET and meet with a handful of CEOs who will give an update on economic conditions across their sectors.
Administration Officials:
Brian Deese, Director of the National Economic Council
Secretary Janet Yellen, U.S. Department of Treasury
Secretary Gina Raimondo, U.S. Department of Commerce
Chair Cecilia Rouse, Council of Economic Advisers
CEOs:
Wendell Weeks, CEO, Corning
Anthony “Tony” Capuano, CEO, Marriott International
Brian Moynihan, CEO, Bank of America
Thasunda Brown Duckett, CEO, TIAA
Punit Renjen, CEO, Deloitte
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BAC | $33.59 | +0.54 | +1.63% |
| MAR | $157.60 | +6.56 | +4.34% |
| GLW | $35.95 | +1.01 | +2.89% |
Coming off of last year’s historic economic growth – and regaining all the private sector jobs lost during the pandemic crisis – it’s no surprise that the economy is slowing down as the Federal Reserve acts to bring down inflation. But even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure. Our job market remains historically strong, with unemployment at 3.6% and more than 1 million jobs created in the second quarter alone. Consumer spending is continuing to grow. Earlier this week, I met with the Chairman of SK Group from Korea, just one of the companies investing more than $200 billion in American manufacturing since I took office, powering a historic recovery in American manufacturing.
My economic plan is focused on bringing inflation down, without giving up all the economic gains we have made. Congress has an historic chance to do that by passing the CHIPS and Science Act and Inflation Reduction Act without delay.
U.S. stocks drifted lower in a choppy trading after a 0.9% contraction in 2Q GDP , the second negative read, which confirms a recession. Investors are also taking in 75 basis point rate hike by the Federal Reserve on Wednesday and positioning ahead of Apple’s earnings due after the closing bell. In commodities, oil rose 1% to the $98 per barrel level.
{{#rendered}}The latest Gross Domestic Product data for the second quarter confirms the U.S. is in a recession.
Cryptocurrency prices were mixed early Thursday as Bitcoin was higher, but Ethereum and Dogecoin were lower.
At approximately 5 a.m. ET, Bitcoin was trading at nearly $23,000 (+0.23%), or higher by more than $57.
For the week, Bitcoin was trading lower by nearly 2%. For the month, the cryptocurrency was higher, gaining more than 10.4%.
Ethereum was trading at approximately $1,625 (-0.78%), or lower by about $12.75.
For the week, Ethereum was trading higher by about 6.75%. For the month, it was trading higher by more than 37%.
Dogecoin was trading at 0.066734 (-0.33%), or lower by approximately $0.00022.
For the week, Dogecoin was lower by more than 5%. For the month, the crypto was lower by nearly 7.25%.
{{#rendered}}A Chinese official accused some U.S. lawmakers of having "Chinaphobia" on Wednesday after a U.S. Senate committee released a report alleging that China has targeted the U.S. Federal Reserve in an attempt to undermine American monetary policy for nearly a decade.
"The so-called report you mentioned is political disinformation fabricated by a handful of Senate Republicans and completely ungrounded," Chinese Foreign Ministry spokesperson Zhao Lijian said at a press briefing on Wednesday. "It seems that some U.S. politicians might be suffering a ‘Chinaphobia’ or persecutory delusion and displaying quite serious symptoms."
Zhao's comments come after Republicans on the Senate Homeland Security and Government Affairs Committee released a report outlining how China tried targeting employees of the Federal Reserve in an attempt to gain access to nonpublic information about American monetary policy.
One employee attempted "to transfer large volumes of data from the Federal Reserve to an external site," while another employee gave "modeling code" to a Chinese university tied to China's central bank, according to the report.
Chinese officials went as far as detaining another Federal Reserve employee during a trip to Shanghai, even threatening his family "unless the individual provided them with economic information and assistance," the report said.
The average price of a gallon of gasoline slipped Thursday morning to $4.278, according to AAA.
Gas prices nationwide were $4.302 on Wednesday and $4.327 on Tuesday.
Prices have been on the decline since hitting a high of $5.016 on June 14, more than seven weeks ago.
Last week, the average price of a gallon of gasoline was $4.44. One month ago, that same gallon of gasoline was $4.881. One year ago, a gallon of gasoline was $3.161, according to AAA.
Diesel prices dropped early Thursday as well, with the national average for a gallon of diesel at $5.341.
A gallon of diesel was $5.365 on Wednesday.
A week ago, a gallon of diesel sold for $5.476. A month ago, that same gallon of diesel sold for $5.787. One year ago, a gallon of diesel cost $3.274, AAA reported.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:DJI | $32,197.59 | +436.05 | +1.37% |
| SP500 | $4,023.61 | +102.56 | +2.62% |
| I:COMP | $12,032.42 | +469.85 | +4.06% |
US stocks were lower and whipsawing one day after the Federal Reserve raised the federal-fund rate by 75 basis points.
Stocks rallied Wednesday afternoon, extending earlier gains, after the Fed move designed to to tame inflation as Fed Chairman Jerome Powell argued that the nation's economy hadn't yet slipped into a recession.
The S&P 500 rose 102.56, or 2.6%, to 4023.61. The Dow Jones Industrial Average advanced 436.05, or 1.4%, to 32197.59. The Nasdaq Composite had its biggest one-day percentage gain in more than two years, surging 469.85 points, or 4.1%, to 12032.42.
Stocks rallied earlier on Wednesday after mega-cap technology companies Microsoft and Google parent Alphabet reported earnings that were better than investors feared.
"The market is bearishly positioned," said Tim Leary, a high-yield bond portfolio manager for RBC Global Asset Management. "Trading volumes have been thin. You get a whiff of good news, and it doesn't take much to have a market rally."
This week is considered a pivotal week in financial markets, and traders around the world were studying the interest-rate decision from the Fed. Investors have been watching closely for any clues from central bankers on the size of further interest-rate increases this year -- and whether officials expect to then turn around and begin cutting rates next year.
In a policy statement, Fed officials acknowledged signs of slower economic activity. Powell said it will likely become appropriate to slow the pace of interest-rate hikes.
Meanwhile, shares were mostly higher in Asia on Thursday.
Hong Kong's benchmark Hang Seng index slipped 0.1% to 20,642.80 after the territory's Monetary Authority matched the Fed's 0.75 percentage point rate hike with one of its own. The HKMA aligns its policies with U.S. monetary moves to keep the Hong Kong dollar at a stable rate against the U.S. dollar.
Tokyo's Nikkei 225 picked up 0.4% to 27,815.48, while the Shanghai Composite index added 0.3% to 3,284.32.
In Seoul, the Kospi advanced 0.8% to 2,435.27.
Australia's S&P/ASX 200 jumped 1% to 6,889.70 after the government reported that retail sales rose in June for the sixth consecutive month.
Also, Treasurer Jim Chalmers told Parliament that the government forecasts that inflation will remain unacceptably high for some time to come and the economy will slow but not fall into recession.
Markets in Thailand were closed for a holiday.
{{#rendered}}| Symbol | Price | Change | %Change |
|---|---|---|---|
| USO | $77.87 | +2.71 | +3.61% |
| CVX | $149.26 | +1.94 | +1.32% |
| XOM | $91.57 | +1.94 | +2.16% |
Oil prices rose more than $1 a barrel on Thursday, extending gains from the previous session, buoyed by improved risk appetite among investors as lower crude inventories and a rebound in gasoline demand in the United States supported prices.
Brent crude futures for September rose $1.13, or 1.1%, to $107.75 a barrel by 0619 GMT, after gaining $2.22 on Wednesday.
U.S. West Texas Intermediate crude (WTI) was at $98.53 a barrel, up $1.27, or 1.3%, after rising $2.28 in the previous session.
A weaker dollar makes oil, priced in dollars, cheaper for buyers in other countries to purchase.
On supplies, U.S. crude oil stockpiles fell by 4.5 million barrels last week, against expectations of a 1-million-barrel drop, while U.S. gasoline demand rebounded by 8.5% week on week, data from the Energy Information Administration showed.
"The U.S. consolidated its position as the world’s largest petroleum exporter," Citi analysts said in a note, as combined gross exports of crude oil and refined products stood at a record 10.9 million barrels a day.
U.S. crude exports reached a record 4.5 million bpd as WTI traded at a steep discount to Brent, making purchases of U.S. crude grades more attractive to foreign buyers.
Prices also found support as the Group of Seven richest economies aims to have a price-capping mechanism on Russian oil exports in place by Dec. 5, a senior G7 official said on Wednesday.
U.S. crude oil production growth could also be limited by the availability of fracking equipment and crews, as well as capital constraints, executives said this week.
Russia has cut gas supply via Nord Stream 1, its main gas link to Europe, to just 20% of capacity. That could lead to switching to crude from gas and prop up oil prices in the short term, analysts said.
Coverage for this event has ended.