So, the chatter around the water cooler—or maybe more apt, the local coffee shop—was all about Intel today. Word on the street is Intel stock jumped about 5.5% on Wednesday. Why, you ask? Well, Bloomberg dropped a bombshell: the bigwigs over there are planning to give the boot to 20% of their workforce.

And the timing is juicy. Just a day before Intel’s earnings are set for their curtain call. The big reveal is scheduled after the bell on Thursday. Let’s just say, all eyes are on them. Can’t make this up, right?

At the helm, or should I say the hot seat, is Intel’s freshly minted CEO, Lip-Bu Tan. He’s already previewed the potential gutting to employees, hinting at tough choices, or as he poetically put it, “hard decisions.” Two intel insiders spilled the beans to Yahoo Finance about the anxious vibes and nail-biting going on in the office corridors. Seems like everyone’s on edge.

The whole semiconductor game has been slipping out of Intel’s hands, particularly in an AI-saturated sphere. This American darling of chips has been tripping over itself in recent years. It’s losing ground to Advance Micro Devices (AMD) as its factories hemorrhage money. Oh, just a little stumble of about 60% in stocks in 2024. No biggie, right? Then again, Intel is still the only show in town for U.S. production at scale. Chalk that up as a silver lining.

Intel launched its Intel Foundry Services back in 2021, thanks to Pat Gelsinger, Tan’s predecessor. This wasn’t a brainwave that exactly saved Gelsinger, since the board showed him the door by December that same year. But the idea was to make Intel not just a selfie-taker with its chips, but a family photographer, making chips for others too.

### Intel 2024 Performance at a Glance

| Metric | Details |
|————————–|——————————|
| Stock Decrease | 60% in 2024 |
| Workforce Reduction | 20% |
| Additional Cuts Planned | 15,000 staff by end of 2024 |
| Previous Brush with Layoffs | 12,000 jobs cut in 2022 |

Gelsinger, on his watch, went on a bit of a hiring spree, inflating the ranks by 10%. But then, the layoff axe came down hard. Intel cleared out 12,000 gigs last year and plans to slash another 15,000 heads. That’s no small potatoes, let me tell you.

Turning back to the new guy, Tan hasn’t let on what his full playbook looks like yet. But as they’re looking down that precipice, he’s vocal about making up lost ground on innovation and puffing up that merchant foundry business. And yes, Intel has been eyeing Nvidia enviously for all this AI chip action.

In a city that never sleeps, Intel finds itself in a plot twist worthy of its own drama series. As some former execs whisper, all this might boil down to bloated operations and bad calls over the last decade. Middle management cutting could be the scalpel, is what they suggest. But come on, less red tape? Never! Surely, you jest.

Some employees worry these cuts might backfire, though. They fear they could plunge morale even lower. While a few others think, maybe not the worst time to jump ship. As Intel gears up to rollout its next big thing, the 18A technology, there’s a lot riding on every micro-decisions.

For now, the tick-tock of the Nasdaq clock waits for no executive reshuffle. Intel is painting its own picture, right on that big screen at the market site in our beloved New York. Only time will tell if this new brushstroke by Tan will bring back the old glimmer. Stay tuned.

The post Intel Shares Rise Amid Reports of a 20% Workforce Reduction Plan appeared first on Kingston Global Tokyo Japan.

If you ever needed a reminder that Wall Street’s like a neurotic dancer tiptoeing the line of indecision, look no further. The S&P 500 keeps pirouetting around breakeven. A bewildering waltz driven partly by what’s brewing in its so-called “safe” havens.

Let’s chew on this — during intraday trading, the Consumer Staples sector didn’t just trip; it face-planted as the biggest loser among all 11 sectors of the S&P 500. Utilities didn’t fare better, proving that even your grandma’s safest stocks tasted bitter. Meanwhile, the flashy Information Technology sector decided to show off, pushing higher on the charts — lucky for some.

Oh, the joys of ETFs! For folks banking on steadiness, the Utilities Select Sector ETF has slipped below the breakeven line. Things look a tad grim for the SPDR S&P Dividend ETF at the moment, as it struggles to convince investors it’s not just another sinking ship. The Invesco S&P 500 Low Volatility ETF isn’t painting a much rosier picture. All these suggest investors are cooling off on ya old faithfuls.

In this Gotham whirlwind of red and green, a curious thing happened: the S&P 500 flirted with its intraday zenith, mere points from breaking the record set on some crusty January 23rd. Today, around 1 p.m. ET, it played tease, hovering just shy of the 6118.71 closing high.

Further Context

• Consumer Staples & Utilities Struggle: Generally seen as safe bets, their downturn could signal shifts in investor confidence or macroeconomic pressures like inflation.
• Information Technology on the Rise: This might reflect resilience or rapidly evolving tech landscapes amidst current market conditions.
• Significance of ETFs: These funds, despite their designed stability, bear the brunt of investor skepticism in volatile times.

With such rollercoaster dynamics, it might be a while before we see decisive moves in the safer corners of the market again. So, buckle up — what comes next is anybody’s guess.

The post Record High Approaches for S&P 500; Dow Declines; Impact of Trump Tariffs on Stocks Like Intel, Nvidia, Moderna, Airbnb, and Others appeared first on Kingston Global Tokyo Japan.

Taking Stock: What’s Buzzing on Wall Street This Week

You know the deal, folks. The Big Apple financial world is gearing up for another whirlwind of a week, with Big Tech earnings, juicy U.S. jobs reports, and the ever-telling PCE inflation data set to be the talk of the town.

Market Movers and Shakers

You’d think with tech stocks soaring, we’d be cruising. But nah, last Friday had Wall Street dancing to a mixed tune. The Nasdaq Composite hit a new rally-infused record, even while the S&P 500 and the Dow couldn’t keep their six-week winning rhythm alive. The S&P dipped 1%, and Dow had a steeper fall, dropping 2.7%. All thanks to a rapid spike in yields as whispers of strong economic outlooks shattered those dreamy Fed rate cut hopes.

Stars of the Earnings Season

Investors are hanging on every word of earnings reports from five of the so-called ‘Magnificent Seven’ tech giants. Alphabet, Microsoft, Meta Platforms, Apple, and Amazon are all set to spill the beans. Meta Platforms is on deck to dish out its third-quarter earnings post the Wednesday bell. Everyone’s got eyes on the AI magic trick it’s been weaving across its digital kingdom. With Facebook, Instagram, Messenger, and WhatsApp pulling the strings behind the curtain, there’s chatter about revenue riding a favorable 18% year-over-year wave. The stock shot up 7.4% last report; will it do the encore?

Meta Platforms at a Glance

Numbers reflect previous market data and should be checked for current accuracy.

The Other Side of the Coin: Intel’s Struggle

Meanwhile, Intel isn’t exactly painting a golden picture. The semiconductor heavyweight has had its share of stumbles trying to keep pace with nimble players like AMD and NVIDIA. Market watchers predict a harsh downturn with shares poised to potentially swing 7.9% either way after Thursday’s earnings reveal. With dwindling revenue forecasts and a sharp decline in PC demand nagging at its seams, the forthcoming report doesn’t promise roses.

Intel: What the Numbers Say

Stay updated with potential shifts in data post earnings announcements.

Mark Your Calendars

But don’t just take my word for it. The U.S. unemployment data drops this Friday, and economists predict a neat addition of 111,000 jobs. Consensus places the unemployment rate right at 4.1%. And yes, the PCE price index—beloved by the Fed—joins this week’s economic parade as well, adding its two cents on the inflation front.

Get in the Game or Sideline It

As always, whether you’re wielding novice ambitions or carrying the savvy of seasoned trading, staying ahead is the mantra. Dive into platforms like InvestingPro for a slice of the actionable pie. How’s that for actionable insights?

For those ready to run with the bulls or take cover from the bears, subscribe with the current 10% off deal and let AI-backed tools guide your stride in this fast-paced market jungle.

Disclosure: Yours truly is bullish on the S&P 500 and Nasdaq 100 via the SPDR® S&P 500 ETF and Invesco QQQ Trust ETF. And yep, I mix it up with the Technology Select Sector SPDR ETF (NYSE: XLK) too. Always touch base with your financial advisor—the views here are mine and not to be mistaken for investment advice.

Catch the latest beat: Follow Jesse Cohen on X/Twitter for stock market musings straight from the city that never sleeps.

Curious to see what unfolds? InvestingPro can keep you well-prepared for whatever Wall Street is cooking.

The post Stock Picks for the Week: Buy Meta Platforms, Sell Intel appeared first on Kingston Global Tokyo Japan.