Intel Soars While Index Dives

The Dow Jones Industrial Average fell about 0.4%, or 134 points, ahead of a key vote in the House of Representatives to extend the U.S. debt limit.

Stocks fell across the board as investors digested economic data showing a slowing post-pandemic recovery in China and a resilient U.S. labor market. Job openings rose in April, leading some to question whether the much-anticipated rate hike pause will be deferred.

After two consecutive positive months, the Dow took a step back in May, falling 3.5% over that period. Meanwhile, the tech-heavy Nasdaq rose 6% during the month and the S&P 500 moved up around 0.3%.

Intel (INTC) was the best-performing stock in the Dow and the S&P 500, surging 5% after the chipmaker’s chief financial officer said he expects the company’s second-quarter sales to come in at the high end of its guidance. Intel was the Dow’s top stock yesterday as well after Nvidia (NVDA) CEO Jensen Huang told reporters his company might contract with Intel to ramp up production of its artificial intelligence (AI) processors.

Verizon (VZ) moved 2.1% higher after inking a $145-million deal with the United States Postal Services to upgrade its cloud and customer service infrastructure. 

Industrials conglomerate 3M (MMM) was the Dow’s worst-performing stock, falling almost 2.9% after a Wall Street Journal report detailing the hundreds of lawsuits being brought against the company over its use of PFAS, otherwise known as forever chemicals, in its products.

Chevron (CVX) shares fell 1.6% after data out of China showed manufacturing and services activity slowed last month, raising doubts about oil demand. Brent crude prices slumped 1.2% to less than $73, just $2 off a 52-week low.

Microsoft (MSFT) fell 1.1% to about $328 despite two upped price targets. Wedbush analysts, citing AI strength, raised their target price to $375 from $340, while Piper Sandler raised its target to $400 and reiterated its buy rating. 

Shares of Caterpillar (CAT) and Honeywell (HON), both Defense Department contractors, fell 1.9% and 1.5%, respectively. The debt-ceiling agreement being considered in Washington would cap military spending at $886 billion.  

Shares of Goldman Sachs (GS) fell about 2.1% a day after it said it would lay off 250 more employees, its third layoff announcement this year amid a slowdown in dealmaking. JP Morgan Chase (JPM) also moved down by 1.3%.