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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|I:DJI||DOW JONES AVERAGES||30982.92||-193.09||-0.62%|
|I:COMP||NASDAQ COMPOSITE INDEX||13526.327968||-4.59||-0.03%|
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.
|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%|
|AMD||ADVANCED MICRO DEVICES INC.||94.75||+3.22||+3.52%|
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.
|IBM||INTERNATIONAL BUSINESS MACHINES CORP.||117.76||-14.04||-10.65%|
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.
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.
|F||FORD MOTOR COMPANY||11.65||+0.13||+1.13%|
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.
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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