Stocks slide as coronavirus aid talks hit snag, tech results disappoint

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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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TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES30982.92-193.09-0.62%
SP500S&P 5003841.15-11.92-0.31%
I:COMPNASDAQ COMPOSITE INDEX13526.327968-4.59-0.03%
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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.

TickerSecurityLastChangeChange %
XLEENERGY SELECT SECTOR SPDR ETF41.67-0.67-1.57%
USOUNITED STATES OIL FUND L.P.35.21-0.56-1.58%
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TickerSecurityLastChangeChange %
INTCINTEL CORPORATION58.60-3.86-6.18%
AMDADVANCED 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.

TickerSecurityLastChangeChange %
IBMINTERNATIONAL 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.

TickerSecurityLastChangeChange %
SLBSCHLUMBERGER LIMITED24.03-0.14-0.58%
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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.

TickerSecurityLastChangeChange %
FFORD MOTOR COMPANY11.65+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.

TickerSecurityLastChangeChange %
WMTWALMART 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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