The Dow Jones Industrial Average (DJINDICES:^DJI) was down 0.55% at 11:50 a.m. EDT Friday as tensions between the U.S. and China heated up. In response to the U.S. ordering the closure of a Chinese consulate in Houston, China has ordered the closure of a U.S. consulate in Chengdu.

Dragging down the Dow on Friday was Intel (NASDAQ:INTC). Intel beat expectations with its second-quarter report, but investors did not react well to a delay related to the company's 7nm manufacturing process. Meanwhile, shares of Verizon (NYSE:VZ) headed higher after the company beat analyst estimates.

A circuit board.

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Intel hammered after 7nm delay

Semiconductor giant Intel put up some good numbers for the second quarter. Revenue surged 20% to $19.7 billion, beating analyst estimates by $1.15 billion, and adjusted earnings per share (EPS) were up 16% to $1.23, a full $0.12 ahead of expectations.

The data center segment was particularly strong, with sales soaring 43% from the prior-year period. The PC business was also no slouch, scoring revenue growth of 7%. Notebook platform volumes and selling prices jumped from last year as increased working from home during the coronavirus pandemic drove demand for PCs.

Despite the solid results, Intel stock was down a whopping 15% by late Friday morning due to an update on the company's 7nm manufacturing process. Intel said that its 7nm CPU product timing has shifted about six months compared to previous expectations, and that the yields for the 7nm process are 12 months behind target. Intel's 10nm process was chronically delayed, and a similar story appears to be playing out with its 7nm process.

Rival Advanced Micro Devices has been shipping processors built on TSMC's 7nm process since last year, helping the smaller company gain ground on Intel. The last thing Intel investors wanted to see was more execution problems.

Intel expects to report third-quarter revenue of $18.2 billion, along with adjusted EPS of $1.10. In the third quarter of last year, the company produced revenue of $19.2 billion and adjusted EPS of $1.35.

Analysts wasted no time downgrading Intel in the wake of the 7nm announcement, with as many as seven analysts downgrading the stock. Shares of Intel are now down about 14% since the start of the year.

Verizon's revenue slumps

Telecom giant Verizon suffered a significant revenue decline in its second quarter, with revenue slumping for the core wireless business. Analysts were expecting worse, a fact that helped drive Verizon stock 0.7% higher by late Friday morning.

Total revenue was $30.4 billion, down 5.1% year over year and $420 million higher than analysts were expecting. Adjusted earnings per share came in at $1.18, down from $1.23 in the prior-year period and $0.03 better than the average analyst estimate.

The revenue decline was driven partly by a slump in wireless equipment revenue due to reduced in-store engagement and changes in customer behavior due to the pandemic. Consumer wireless equipment revenue dropped 17.8%, while consumer wireless service revenue fell 2.7%. The company had 72,000 retail postpaid net adds in the quarter, but it lost 81,000 Fios video subscribers.

Verizon reiterated its full-year guidance, calling for adjusted EPS growth between -2% and 2%. The stock has bounced back from its March lows, but it hasn't fully recovered. Shares of Verizon are down about 8.5% since the beginning of the year.