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Wall Street dips as technology stocks weigh

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U.S. stocks dipped on Friday, as technology shares took a hit from Intel's disappointing quarterly report, while investors assessed data that showed domestic growth was boosted by temporary factors in the first quarter.

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First-quarter GDP increases at 3.2 pct rate

Ford jumps after Q1 profit, revenue beat estimates

Intel slides as data center sales remain weak

Exxon falls after profit miss, weighs on energy

Indexes down: Dow 0.15%, S&P 0.18%, Nasdaq 0.57%

Updates to open

By Sruthi Shankar and Amy Caren Daniel

April 26 (Reuters) - U.S. stocks dipped on Friday, as technology shares took a hit from Intel's disappointing quarterly report, while investors assessed data that showed domestic growth was boosted by temporary factors in the first quarter.

The Commerce Department said gross domestic product increased at a 3.2 percent annualized rate, lifted by trade and the largest accumulation of unsold goods since 2015, factors that are likely to reverse in the coming quarters.

However, consumer and business spending slowed sharply, and investment in homebuilding contracted for a fifth straight quarter, giving the report a weak tone.

"The data is a vote of confidence that tells us the economy is humming and fears of a slowdown have been assuaged for the moment," said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey.

"Markets have been very strong all year, and this confirms that things are going fine, but we could see some volatility as investors dissect these numbers."

The data comes as investors look for fresh catalysts to push the markets higher, with the S&P 500 .SPX now about 0.7% below its record high hit in late September, boosted by largely positive earnings reports.

Nearly 78% of the 178 S&P 500 companies that have reported so far have surpassed earnings estimates, according to Refinitiv data.

Wall Street now expects earnings to be in line with the year-ago quarter, a sharp improvement from the 2.3% fall expected at the start of April.

Intel Corp INTC.O slumped 9.4% after it cut its full-year revenue forecast and missed quarterly sales estimate for its key data center business.

Its results hit other chipmakers, with the Philadelphia chip index .SOX down 2.65%, while the broader technology sector .SPLRCT fell 1.11%.

At 9:43 a.m. ET, the Dow Jones Industrial Average .DJI was down 40.14 points, or 0.15%, at 26,421.94, the S&P 500 .SPX was down 5.26 points, or 0.18%, at 2,920.91 and the Nasdaq Composite .IXIC was down 46.04 points, or 0.57%, at 8,072.64.

The energy sector .SPNY fell 1.34%, the most among the three S&P sectors in the red, weighed down by lower crude prices and Exxon Mobil Corp's XOM.N downbeat results. O/R

Exxon declined 2.5% after its quarterly profit missed estimates on lower oil and gas prices and weakness across its businesses.

Offering support to markets was Ford Motor Co F.N, whose shares surged 8.8% after the automaker posted better-than-expected quarterly earnings largely due to strong pickup truck sales in its core U.S. market. Inc AMZN.O, rose 0.3% after the e-commerce giant reported quarterly profit that doubled and beat estimates on soaring demand for its cloud and ad services.

Mattel Inc MAT.O jumped 7.6% after the toymaker beat analysts' estimates for quarterly revenue, as a more diverse range of Barbie dolls powered sales in the United States.

Advancing issues outnumbered decliners for a 1.23-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.16-to-1 ratio on the Nasdaq.

The S&P index recorded 16 new 52-week highs and two new lows, while the Nasdaq recorded 28 new highs and 17 new lows.

(Reporting by Sruthi Shankar and Amy Caren Daniel in Bengaluru; Editing by Anil D'Silva and Shounak Dasgupta)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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