Shares of technology companies rose after a strong earnings report for one bellwether.
The sector was set to come under pressure Friday as Intel plunged in late trading following a stark drop in fourth-quarter earnings, revenue and gross margins.
"The number I think is going to draw the most questions is on gross margin," said JJ Kinahan, chief executive of IG North America, the parent company of options firm tastytrade. "When your margins are affected that greatly, it's almost like you didn't do anything about spending."
Shares of Tesla added more than 10% after the electric-car maker posted fourth-quarter earnings and sales growth ahead of investor expectations, quelling concerns about cooling demand for electric vehicles during the economic slowdown.
Shares of German software maker SAP fell after it warned of layoffs.
Qualtrics shares rallied after SAP said it was selling its stake in the maker of cloud technology, potentially opening up new growth avenues.
Stripe, one of Silicon Valley's most valuable startups, is moving closer to what could be one of the biggest public-market debuts in recent memory as co-founders Patrick and John Collison told employees that the firm had hired Goldman Sachs and JPMorgan to review strategic options.
Activist investor Elliott Management is preparing to nominate a slate of directors at business software maker Salesforce.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-26-23 1731ET
