US indices end lower on Intel disappointment

NEW YORK (Reuters) –US stocks fell on Wednesday, after Intel Corp (INTC.O) posted both a disappointing profit and outlook, driving the S&P 500 to its lowest closing level in 14 months.

The poor results from Intel, the world’s largest chip maker, came on the heels of poor retail sales data on Tuesday, dismal banking results and a slew of indicators showing the U.S. economy may be on the brink of a recession.

Investors also unloaded Apple Inc’s (AAPL.O) shares for a second day, after the maker of the iPod failed to inspire with new products at its Macworld convention.

But stocks traded on a roller-coaster ride on Wednesday, with the Dow rising and falling by as much as 100 points, as investors bought up beaten-down bank stocks, after JPMorgan Chase & Co (JPM.N) posted a profit despite turmoil in the credit market.

The results from the No. 3 U.S. bank, though worse than expected, provided comparative relief from the gloom cast by Citigroup’s (C.N) record quarterly loss on Tuesday. A smaller-than-expected profit decline by Wells Fargo & Co (WFC.N), the No 2. U.S. mortgage lender, also helped.

The Dow Jones industrial average was down 34.95 points, or 0.28 percent, at 12,466.16. The Standard & Poor’s 500 Index was down 7.75 points, or 0.56 percent, at 1,373.20. The Nasdaq Composite Index was down 23.00 points, or 0.95 percent, at 2,394.59.

Lending some support during the session was news that a legislative package to stimulate the U.S. economy and avert a recession could be signed into law within a month.