Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dow Futures Fall 232 Pts; IBM And Intel Weigh

Published 01/22/2021, 07:05 AM
Updated 01/22/2021, 07:06 AM
© Reuters.

© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are seen weakening Friday, after disappointing news from a couple of tech giants and as a record-breaking week, highlighted by Joe Biden’s inauguration, comes to a close.

At 7:25 AM ET (1225 GMT), the Dow Futures contract was down 262 points, or 0.8%, S&P 500 Futures traded 29 points, or 0.8%, lower, and Nasdaq 100 Futures dropped 79 points, or 0.6%. 

The S&P 500 and the Nasdaq Composite closed at fresh record highs on Thursday, while the Dow Jones Industrial Average just missed the same fate, ending marginally lower. All three indices are set to close the week with strong gains, the fifth higher week in six.

Biden was sworn in as the 46th President of the United States on Wednesday, and will mark his third day in office by signing executive orders to boost food benefits for impoverished Americans as well as workers’ rights.

However, it’s the passage of his proposed $1.9 trillion stimulus package through Congress that is attracting attention, amid opposition from Republicans who question the size of the bill given last month’s $900 billion deal.

Staying in Washington, the Senate is expected later Friday to confirm Janet Yellen, a former head of the Federal Reserve, as Biden’s Treasury secretary. 

In corporate news, the tech sector is set to be in focus Friday after both Intel (NASDAQ:INTC) and IBM (NYSE:IBM) reported quarterly results late Thursday. Both stocks are expected to head sharply lower, Intel weighed by the news that financially sensitive information had been hacked as well as plans to do more licensing deals with rivals, while IBM missed revenue expectations.

The earnings season continues Friday, with oilfield services company Schlumberger (NYSE:SLB) and transportation holding company Kansas City Southern (NYSE:KSU) due, both offering slightly lower profiles than the two tech giants.

The data slate includes the final PMI data for January, but investors may study the existing home sales release for December to see whether the uptick in Covid-19 sales is hurting this previously buoyant sector.

Oil prices weakened Friday on concerns that a rise of Covid-19 cases in China, the world’s largest importer, will severely impact demand, given the reintroduction of restrictive measures.

Shanghai reported the first locally transmitted cases in two months on Thursday, while Beijing is now urging tens of millions of urban workers not to travel back to their largely rural families during the upcoming Lunar New Year holiday.

The U.S. Energy Information Administration is due to release its weekly inventory report later Friday, a couple of days later than usual. This follows the American Petroleum Institute recording crude inventories rising 2.6 million barrels earlier in the week.

U.S. crude futures traded 1.6% lower at $52.30 a barrel, while the international benchmark Brent contract fell 2.6% to $54.64. 

Elsewhere, gold futures fell 0.9% to $1,848.80/oz, while EUR/USD traded 0.1% higher at 1.2175.

 

 

Latest comments

No worries. The White House plan is ready to give the market a big boost. And it’s just another high time to buy at some lows. When the selloff is soon minimized, it will naturally go up again.
All new comments are censured. We all must believe the market is happy and up because of Biden.
Sniffer effect
The Real Biden Affect = SellPeople are seeing his first steps and realizing the it is worse then the expected stimulus to Dem states.
where is all the optimism now I think the market is scared to death about what is coming from this dangerous group in Washington
Well, if as the article states, that the DOW, "...highlighted by Joe Biden's inauguration", drops over 200 points, we are truly in for a bumpy ride.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.