Shares of technology companies fell after a weak earnings report from one bellwether.
"We're getting into the depths of the earning season and of course so much of the focus is on mega tech," said Quincy Krosby, chief global strategist at brokerage LPL Financial. Excitement about the sector has grown with the stellar opening performance to the year. "But the expectations at the same time have grown," Krosby said.
Intel shares tumbled after the chipmaker's fourth-quarter earnings lagged Wall Street expectations as it seeks to overhaul its factories. Investors are eagerly awaiting profit reports from mega-cap companies such as Microsoft, which are at the heart of the artificial-intelligence boom, said one strategist.
"Investors are awaiting monetization of the products delivered that are AI-enabled, and especially generative AI," said Krosby. "The market has understood that it's a costly endeavor, that this phase of AI takes time, but now the market is focused on 'show us some of the products.'"
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-26-24 1803ET
