Intel shares rise as takeover speculation spreads

• The S&P 500 jumped 1% on Friday, January 17, 2025, starting a three-day weekend on a high note as prospects for further rate cuts in 2025 improved.

• Intel shares surged after reports that the semiconductor giant could be a takeover target.

• Freight shipper JB Hunt posted lower-than-expected fourth-quarter sales and profits, and its shares fell.

Major US stock indices pushed higher to end the week with traders set for a day off to mark Martin Luther King Jr. Day on a Monday when Donald Trump will also be sworn in for his second term as president.

The strength in stocks at the end of the week coincided with renewed optimism that the Federal Reserve could cut interest rates further in 2025. supported by evidence a declining inflation. (Here are four reasons Inflation is still there.)

The S&P 500 rose 1% on Friday. Strength in the technology sector helped the Nasdaq gain 1.5%, while the Dow ended the day up 0.8%.

Intel (INTC) shares rose 9.3%, the best performer of the S&P 500, after reports the semiconductor giant could be a takeover target. Friday’s rise followed gains in Intel shares earlier in the week after the chipmaker said it would convert its venture fund into a standalone entity, with the company remaining an investor. Intel’s interim CEO said the move would help the company increase efficiency and maximize the value of its assets.

SLB (SLB), the world’s largest oilfield services company, reported better-than-expected fourth-quarter earnings, raised its dividend and stepped up its share buybacks. Although SLB has struck a cautious tone for 2025, suggesting year-over-year revenue growth will be limited as high oil supply limits oilfield activity, its shares rose 6.1% on the back of the strong earnings report.

Truist Financial shares (TFC) rose 5.9% after the bank holding company beat quarterly sales and profit estimates. Net interest income and non-interest income increased compared to the previous year and contributed to the good results. An increase in average deposit balances also contributed to Truist’s performance, although average loan balances declined.

Shares of JB Hunt Transport Services (JBHT) suffered the biggest fall of any S&P 500 stock on Friday, plunging 7.4% after the shipping company’s fourth-quarter sales and profits fell short of expectations. Declining volumes weighed on performance and the company experienced declines in sales across all of its segments. JB Hunt’s CEO said the company remains focused on repairing its margins while managing headwinds in the freight industry.

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