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Investing.com - Here are the top five things you need to know in financial markets on Friday, April 26:
1. GDP growth forecast to hit 2-year low
The preliminary release of first-quarter gross domestic product at 8:30 AM ET (12:30 GMT) is expected to show that U.S. economic growth was 2.0%, its slowest pace since the first quarter of 2017.
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Although GDP is often viewed as a lagging indicator, with most of the ingredients released ahead of the headline number, high levels of uncertainty may increase the likelihood of market volatility.
“We observe the largest dispersion among consensus forecasts since the global financial crisis,” John Velis, FX and macro strategist at BNY Mellon, said in a note. He highlighted the range of estimates in a Bloomberg consensus were as high as 2.9% and as low as 1.0%.
“When the verdict on U.S. growth in the first quarter is finally revealed, someone somewhere will be surprised, and risk assets could react accordingly,” Velis concluded.
2. Intel plunges 8% on weak guidance
Shares in Intel (NASDAQ:INTC) plunged 8% in premarket trade Friday after the chipmaker reported weak guidance.
The Dow component said it expects to earn 89 cents a share on revenue of $15.6 billion in the second quarter. The projection compares with an estimate of $1.02 from S&P Capital IQ and a revenue estimate of $16.88 billion.
The gloomy outlook sent waves of bearish sentiment through the semiconductor sector. Rival chipmakers Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and Micron (NASDAQ:MU) were also under pressure in extended hours trading.
3. Blue-chip oil stocks step up to plate amid earnings reports
With Intel set to lead declines on the Dow Jones, oil blue-chip stocks ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) will step up to the plate as they release earnings ahead of Friday’s open.
First-quarter results will be under the microscope in an environment of sharply higher oil prices.
In other earnings to be priced in on Friday, shares in Amazon (NASDAQ:AMZN) - currently the world’s third most valuable company behind Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) - registered gains of around 1% in premarket. The online retailer reported better-than-expected first quarter results, but also delivered a cautious guidance.
Mattel (NASDAQ:MAT), Ford (NYSE:F) and Starbucks (NASDAQ:SBUX) - who all reported after the prior session’s close - saw gains in premarket trade, while American Airlines (NASDAQ:AAL), Archer-Daniels-Midland (NYSE:ADM), Goodyear Tire & Rubber (NASDAQ:GT) and Weyerhaeuser (NYSE:WY) were among companies slated to release quarterly numbers ahead of Friday’s open.