US STOCKS-Wall Street dips as Intel drags tech stocks lower

(Reuters) – U.S. stocks fell on Friday as technology shares were dragged lower by disappointing results from Intel and Twitter, although a jump in Amazon after strong earnings helped curb losses.

Intel (INTC.O) sank 7.4 percent after its fast-growing data center business missed estimates as the chipmaker faced stiff rivalry from Advanced Micro Devices (AMD.O), which rose 3.8 percent.

Twitter’s shares plunged 18.3 percent after reporting fewer-than-expected monthly active users and warning that the closely watched figure could keep falling as it deletes phony accounts.

Five of the 11 main S&P sectors were lower, with technology’s 0.94 percent drop, the steepest.

The pressure on tech stocks continued from Thursday when Facebook’s (FB.O) dismal forecast caught investors off guard about the growth prospects in a sector that has led the market’s march towards record highs.

“So you can continue to have strong fundamentals but if that confidence is shaken a little bit you’re going to see a bigger pullback than the fundamentals warrant,” said Brad McMillan, chief investment officer for Commonwealth Financial Network.

The U.S. economy grew at a 4.1 percent annualized rate in the second quarter, its fastest pace in nearly four years, the Commerce Department said, as consumers boosted spending and farmers rushed shipments of soybeans to China to beat retaliatory trade tariffs.

But the growth pace matched expectations and economists cautioned against putting much weight on the surge as the trade-related boost is expected to unwind later this year.

“A pretty big number is really not a huge shock, but the question is, are the numbers sustainable,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 24, 2018. REUTERS/Brendan McDermid (AMZN.O) jumped as

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