Stocks slide as coronavirus aid talks hit snag, tech results disappoint
Biden’s regulations could have a ‘big impact’ on bank stocks: Axios markets editor
Axios markets editor Dion Rabouin provides insight into the winners and losers in the ‘Biden market.’
U.S. equity markets were moderately lower Friday morning as a stalemate in coronavirus aid talks and disappointing tech earnings have the major averages set to fall from their record highs.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 30982.92 | -193.09 | -0.62% |
| SP500 | S&P 500 | 3841.15 | -11.92 | -0.31% |
| I:COMP | NASDAQ COMPOSITE INDEX | 13526.327968 | -4.59 | -0.03% |
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The Dow Jones Industrial Average was weaker by 222 points, or 0.71%, while the S&P 500 and the Nasdaq Composite were down 0.47% and 0.35%, respectively.
Republican Sens. Mitt Romney of Utah and Lisa Murkowski of Alaska on Thursday suggested it was too early to know if the economy needs President Biden’s proposed $1.9 trillion package that would extend larger stimulus checks and bigger unemployment benefits, among other things. They would prefer to wait and see how the economy responds to the $900 billion package that was passed last month.
In sector news, energy stocks tumbled with West Texas Intermediate crude down $1.32 to $51.81 a barrel on concerns about President Biden's forthcoming regulatory actions impacting oil and gas drilling.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLE | ENERGY SELECT SECTOR SPDR ETF | 41.67 | -0.67 | -1.57% |
| USO | UNITED STATES OIL FUND L.P. | 35.21 | -0.56 | -1.58% |
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORPORATION | 58.60 | -3.86 | -6.18% |
| AMD | ADVANCED MICRO DEVICES INC. | 94.75 | +3.22 | +3.52% |
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Looking at tech stocks, Intel Corp. posted record annual revenue, but investors were left disappointed as full-year profit slipped 0.9% from the year prior as customers purchased more lower-cost laptops that aren’t as profitable. The chipmaker declined to give a full-year outlook ahead of the arrival of new CEO Pat Gelsinger. AMD also in focus.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| IBM | INTERNATIONAL BUSINESS MACHINES CORP. | 117.76 | -14.04 | -10.65% |
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International Business Machine Corp. reported revenue declined for a fourth straight quarter, down 6%, as corporate customers hoarded cash to ride out the pandemic. The company did not provide an outlook, but did say revenue is expected to grow in the current year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SLB | SCHLUMBERGER LIMITED | 24.03 | -0.14 | -0.58% |
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Elsewhere, oilfield services provider Schlumberger Ltd. announced earnings and revenue that exceeded Wall Street estimates, bolstered by cost-cutting measures and a return in demand for its services and equipment.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR COMPANY | 11.65 | +0.13 | +1.13% |
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Ford Motor Co. recalled 3 million vehicles due to faulty airbags that will cost $610 million to fix.
In other corporate news, Walmart announced it has expanded coronavirus vaccine options to seven states.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 146.21 | +1.29 | +0.89% |
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In other commodities, gold slid $25 to $1,840.90 an ounce.
European markets were lower across the board with Britain’s FTSE 100 trading down 0.58%, Germany’s DAX 30 weaker by 0.39% and France’s CAC 40 losing 0.85%.
In Asia, Hong Kong’s Hang Seng index paced the decline, down 1.6%, while Japan’s Nikkei 225 and China’s Shanghai Composite index fell 0.44% and 0.4%, respectively.
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