Stock futures weakened on Friday following a lackluster sales forecast from Intel, which caused traders to lower their expectations. The Federal Reserve's release of the personal consumption expenditures price index, a key inflation measure, also contributed to the downward pressure on equities. Despite this, the S&P 500 closed at a fifth consecutive record high on Thursday.

Intel's revenue forecast falls short, leading to a 12% drop in shares

Intel, the semiconductor company, experienced a significant decline of 12% as it issued a disappointing revenue forecast for the first quarter. Analysts had anticipated higher figures, but Intel's projection of $12.2 billion to $13.2 billion fell well below the consensus of $14.2 billion. Additionally, the company's adjusted earnings estimate of 13 cents per share for the first quarter was far below analysts' expectations of 34 cents. CEO Pat Gelsinger attributed the downward revision to challenges faced by Intel's programmable-chip unit and autonomous-driving business.

Western Digital reports narrower loss than expected but faces declining revenue

Western Digital announced an adjusted loss of 69 cents per share in the fiscal second quarter, which was better than analysts' estimate of a $1.12 loss. However, the company witnessed a 2% decrease in revenue, with cloud revenue falling by 13%, from $3.11 billion to $3.03 billion compared to the previous year. Despite the narrower loss, Western Digital issued a third-quarter sales guidance ranging from $3.2 billion to $3.4 billion, surpassing analysts' expectations of $3.15 billion. Nevertheless, shares dipped by 5.7%.

In summary, Intel's subdued sales forecast and Western Digital's mixed performance have led to jitters in the stock market. It remains to be seen how these developments will impact the overall trajectory of equities.

KLA Corp. Reports Fiscal Second-Quarter Results

KLA Corp., a leading semiconductor equipment manufacturer, announced its fiscal second-quarter profit of $582.5 million, or $4.28 per share. This is a decrease compared to the previous year's profit of $978.8 million, or $6.89 per share. Although the company experienced a decline in revenue from $2.98 billion to $2.49 billion, it remains optimistic about its fiscal third-quarter revenue of $2.3 billion, with a margin of plus or minus $125 million. This projection falls short of initial expectations of $2.45 billion. As a result, KLA shares declined by 7.1%.

Visa Exceeds First-Quarter Earnings Estimates

Visa, a global payments technology company, reported adjusted first-quarter earnings of $2.41 per share, surpassing the forecasted $2.34 per share. The company's revenue also saw a positive growth of 9%, reaching $8.63 billion. Visa's payments volume and processed transactions rose by 8% and 9% respectively. Reiterating its revenue and per-share profit forecast for the fiscal year, Visa's stock experienced a decline of 3.2%.

Tesla Faces Significant Stock Decline due to Growth Concerns

Tesla, a renowned electric-vehicle manufacturer, saw its stock plummet by 12% to $182.63, marking the largest decrease since January 3, 2023. This decline came after Tesla expressed concerns about slowing growth in 2024. However, in premarket trading on Friday, the stock showed a slight recovery, rising by 0.3% to $183.15.

Microsoft Achieves $3 Trillion Market Cap Milestone

Microsoft has joined Apple as the only two U.S. companies to surpass the $3 trillion market capitalization mark on a closing basis. Microsoft closed at $404.87 on Thursday, solidifying this significant achievement. However, the stock experienced a minor dip of 0.7% in premarket trading on Friday, reaching $401.88.

Upcoming Earnings Reports from American Express, Colgate-Palmolive, and Norfolk Southern

Investors await the earnings reports from American Express, Colgate-Palmolive, and Norfolk Southern, scheduled to be released on Friday.