Closing Bell: Market Rotates in Preparation for Mag 7 Earnings Next Week

Key Points

• Markets were mixed as leadership shifted toward Mega-Cap technology ahead of a heavy earnings week.
• Intel shares plunged more than 17% despite beating revenue and EPS expectations, as weaker Q1 guidance, margin pressure, rising input costs, and capital-intensive foundry investments weighed on sentiment.
• Capital One shares moved lower after revenue beat, but EPS missed expectations, while the announced acquisition of Brex.

Markets ended the day mixed as the rotation trade appeared to shift back toward Mega-Cap technology names ahead of a major earnings week. The S&P 500 (SPX) finished relatively flat on the session, the Nasdaq-100 (NDX) advanced 0.34%, and the Russell 2000 (RUT) declined 1.82%. Materials, Consumer Discretionary, and Consumer Staples led gains within the S&P 500, while Financials and Industrials lagged.

Intel Drops Sharply After Earnings

Intel (INTC) fell more than 17% during the session after reporting earnings that exceeded consensus expectations for the quarter, but issuing weaker-than-expected Q1 guidance. The company reported revenue of $13.67 billion versus estimates of $13.40 billion and adjusted EPS of $0.15 versus $0.08 expected. Intel guided lower on Q1 gross margins as input costs continue to rise and its foundry buildout remains capital-intensive. The company is also experiencing a shortage of memory chips critical to its Client Computing segment, which includes personal computers.

Capital One Announces Brex Acquisition, Shares Move Lower

Capital One reported mixed earnings, with revenue exceeding analyst expectations but adjusted EPS missing estimates. The company also announced its acquisition of Brex, a financial services firm that provides business credit cards and expense management solutions, further diversifying its portfolio beyond consumer credit. The transaction is expected to close in mid-2026.

Market Events for Monday

• 08:30 AM ET: Durable Goods Orders

Notable Earnings for Monday

• A.M: BKR, STLD
• P.M: AGNC, BRO, CR, CCI, NUE, WRB, WAL

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