Intel Stock Surges on Potential Foundry Business Spinoff

Top Stock Movers Now: Intel, Marvell Technology, Ulta Beauty, and More

Ulta Beauty shares fell as the retailer's latest quarterly results were hurt by a pullback in discretionary spending and tougher competition. The Dow, S&P 500, and Nasdaq were little changed at midday Friday after fresh data showed inflation continued to cool in July, as expected. Intel (INTC) was the best-performing stock in the S&P 500 following a report the chipmaker is considering strategic options which could include a sale or spinoff of its foundry division. Shares of Marvell Technology (MRVL) jumped after the networking circuits maker reported better-than-expected sales as it benefited from soaring demand for artificial intelligence (AI). Alibaba Group (BABA) shares traded in the U.S. rose as Chinese regulators said the e-commerce firm completed a three-year "rectification" related to charges it engaged in monopolistic practices. Ulta Beauty (ULTA) shares dropped after the maker of beauty products missed earnings and revenue estimates, had a surprise drop in comparable store sales, and cut its outlook as consumers pulled back discretionary spending and the company faced more competition. Elastic N.V. (ESTC) shares cratered as the AI search and data company slashed its guidance, warning that it expects fewer customer commitments. Oil and gold futures fell. The yield on the 10-year Treasury note was up slightly. The U.S. dollar advanced on the euro, pound, and yen. Prices for most major cryptocurrencies dropped.

Midday stock movers: Intel, Dell, Ulta

The stock market is trading mixed after the personal consumption expenditures price index (PCE), the Fed's preferred measure of inflation, increased by 0.2% in July and rose 2.5% year-over-year, matching consensus estimates. The S&P 500 is up 0.1% and the tech-heavy Nasdaq Composite added 0.3%. The Dow Jones Industrial Average lost 0.2%, and the Russell 2000 Index dropped 0.3%. Trending stocks: Intel surged 8% after the company sought bankers' advice on potential options to strengthen its business, and Dell gained 3.5% following its earnings beat. Nvidia stock added 0.6% following yesterday's drop, prompted by a not-quite-good-enough financial report. In the retail sector, Lululemon and Ulta Beauty traded lower following Thursday's earnings reports, which disappointed investors. Both companies cut their guidance. The five S&P 500 stocks with the largest midday drops are: Dell stock added 3.5% at last check after the company's earnings and revenue beat consensus estimates. For the quarter ended Aug. 2 the company earned an adjusted $1.89 a share, up 9% and topping analysts' consensus estimate of $1.71. Revenue of $25.03 billion also increased by 9%, coming in higher than the $24.53 billion expected. Related: Analysts revise Dell stock price target ahead of earnings The company's Infrastructure Solutions Group posted record revenue of $11.6 billion, a 38% increase from the year-earlier period. This included $7.7 billion in revenue from servers and networking, an 80% rise, driven by strong demand for both artificial-intelligence and traditional servers. "Our AI momentum accelerated in Q2, and we've seen an increase in the number of enterprise customers buying AI solutions each quarter," Chief Operating Officer Jeff Clarke said. Dell is working with Nvidia and Elon Musk's xAI to supply AI servers. Ulta Beauty falls on earnings and revenue miss Ulta Beauty slipped 4.6% after reporting disappointing earnings. The stock dropped as much as 7% in the premarket, then recovered. For the quarter ended Aug. 3 the beauty retailer earned $5.30 a share, missing analysts' forecast of $5.46. Revenue of $2.55 billion fell short of the $2.61 billion analysts expected. Related: Analysts reset Ulta stock price targets after Warren Buffett buy The results marked the company's first earnings-per-share miss since May 2020 and its first revenue miss since December 2020, CNBC reported. Comparable sales fell by 1.2%, compared with an 8% increase in the year-earlier [. Ulta now expects full-year earnings per share of $22.60 to $23.50 on revenue of $11 billion to $11.2 billion. The figures are down from prior estimates of earnings of $25.20 to $26 on revenue of $11.5 billion to $11.6 billion. Earlier this month, a filing disclosed that Warren Buffett's Berkshire Hathaway acquired a stake in Ulta Beauty in the second quarter. The 690,000 shares were valued at $266.3 million as of June 30. Intel jumps after seeking bankers' help to fix the business Intel gained more than 8% midday as executives work with multiple advisers, including Morgan Stanley and Goldman Sachs, to explore options for reviving its struggling business, Bloomberg reported. The advisers are considering various strategies, potentially including M&A or the sale of certain business units. They're expected to present these options to the board during a meeting in September, people familiar with the matter told the news service. More Tech Stocks: For the June quarter the chipmaker reported a net loss of $1.6 billion. Revenue for the period was $12.83 billion, down 1% from a year earlier and below the estimated $12.93 billion. The results sent Intel shares to their lowest since 2013. "Our revenues have not grown as expected -- and we've yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low," Chief Executive Patrick Gelsinger said. Intel plans to lay off more than 15% of its workforce by the end of 2025. Related: Veteran fund manager sees world of pain coming for stocks

S&P 500 Gains and Losses Today: Intel Soars as Chipmaker Eyes Foundry Divestment

Subdued consumer spending and stiff competition dragged on Ulta Beauty's quarterly performance, and shares of the cosmetics retailer fell. Major U.S. equities indexes moved higher on Friday as the latest Personal Consumption Expenditure (PCE) data showed cool inflation in July, which was in line with expectations. The latest signal of moderating price pressure supports the likelihood of an interest rate cut by the Federal Reserve next month. The S&P 500 jumped 1.0% on the final trading day of August. The Dow added 0.6%, ending the month with its first-ever close above 41,500. The Nasdaq was up 1.1%. Intel (INTC) shares notched the best performance in the S&P 500, soaring 9.5% following reports that the chipmaker is considering a possible spinoff or sale of its foundry business. According to Bloomberg, people familiar with the matter said Intel is exploring multiple options for the section of the company that makes semiconductors for other firms. However, it may take time for Intel to make a move, with board members likely to discuss the possibilities at their meeting in September. Shares of GE Vernova (GEV), the energy-focused business that spun off from General Electric in April, jumped 4.8% to an all-time high. Brokerage firm William Blair initiated coverage of the stock on Thursday with an "outperform" rating. According to analysts, the high demand for energy to power artificial intelligence (AI) technology will likely require more natural gas and natural gas turbines. GE Vernova is well-positioned to benefit from turbine service contracts. Western Digital (WDC) shares were up 4.1% on the day. Earlier this week, analysts at Citi boosted their sales estimates for solid-state drives, predicting favorable supply-and-demand dynamics. Western Digital also received approval this week for a project to expand hard disk production in Thailand. Shares of networking and IT services provider Hewlett Packard Enterprise (HPE) gained 3.7% ahead of the company's upcoming earnings report, which is set for release on Wednesday afternoon. Following HPE's most recent quarterly report in June, the stock surged to a record high, boosted by strong sales of AI-optimized servers. Ulta Beauty (ULTA) shares dropped 4.0%, losing the most ground of any S&P 500 stock after the cosmetics retailer's quarterly sales and profits came in below estimates. Ulta reported an unexpected decline in comparable store sales amid restrained discretionary spending and heightened competition. The makeup seller also reduced its full-year forecasts, noting market share challenges. Shares of oil and gas exploration firm APA Corp. (APA) sank 2.9% on Friday. Although APA beat quarterly sales and profit estimates in its most recent report, released at the end of July, the stock plunged following those results and has been trending downward since then. Last quarter's strong performance reflected increased production following the acquisition of Callon Petroleum, which closed on April 1, and APA boosted its forecast for cost synergies while noting it was ahead of schedule with the integration. Super Micro Computer (SMCI) shares dropped 2.5%, extending steep losses posted earlier this week after the server and data storage firm said it would postpone its annual filing with the Securities and Exchange Commission (SEC). Supermicro's move to delay its 10-K came a day after a report by activist investment firm Hindenburg Research flagged irregularities in the company's accounting practices, particularly relating to revenue recognition processes.