Wall Avenue slips as IBM and Intel stall after Reuters outcomes
© Reuters. FILE PHOTO: A sign is pictured on Wall Street in front of the New York Stock Exchange in New York City
By Devik Jain and Medha Singh
(Reuters) – Major Wall Street indices fell on Friday, hurt by losses in blue-chip technology from Intel and Intel IBM (NYSE 🙂 according to its quarterly results, with concerns about a surge in coronavirus cases also hurting sentiment.
IBM Corp slumped about 10% and was the biggest drag after missing estimates for quarterly revenue, hurt by a rare drop in revenue in the software unit.
Intel Corp. (NASDAQ 🙂 lost 9% when new Chief Executive Officer Pat Gelsinger indicated the lack of strong acceptance of outsourcing in his post-win comments.
However, increases by Microsoft Corp. (NASDAQ :), Apple Inc (NASDAQ 🙂 and Facebook Inc. (NASDAQ 🙂 helped offset some of those losses and kept major US stock indices from falling further.
“We’ll be in a broader bull market, but there will be times when the market needs to let off some steam … some of that euphoria needs to be washed out,” said Max Gokhman, director of asset allocation at Pacific Life Fund Advisors in Newport Beach , California.
Energy, financial, industrial and materials company stocks, which had gained more than 14% since the election, fell the most on Friday.
The S&P 500 and Nasdaq saw some losses after the opening bell, as data showed that US manufacturing activity surprisingly rose to its highest level in more than 13 1/2 years in early January.
At 12:05 p.m. ET, the Dow Jones Industrial Average fell 111.96 points, or 0.36%, to 31,064.05, the S&P 500 lost 7.54 points, or 0.20%, to 3,845.53, and the lost 19 , 15 points or 0.14% to 13,511.76.
Despite the weakness, the three main indices were adjusted to weekly gains, with tech-heavy Nasdaq posting its best weekly performance since Nov. 6, when investors in Alphabet (NASDAQ 🙂 Inc, Apple Inc and Amazon.com Inc (NASDAQ 🙂 in anticipation of their earnings reports in the coming weeks.
Some market participants said new COVID-19 variants and hiccups in vaccine rollouts pose short-term risks as stock valuations neared dot-com-era levels.
Speaking at an event held at the White House Thursday, President Joe Biden said the U.S. death toll from the pandemic is likely to exceed 500,000 next month.
“That really just highlights that there are still challenges ahead, and that gives some of the more bullish investors in the market a reason to pause before buying more stocks,” said Gokhman.
The Senate Finance Committee unanimously approved Janet Yellen’s appointment as first Secretary of the Treasury, indicating that she will easily gain full Senate approval.
Declining issues outperformed advanced with a ratio of 1.6 to 1 on the NYSE and a ratio of 1.3 to 1 on the Nasdaq.
The S&P 500 made 10 new 52-week highs and no new low, while the Nasdaq made 156 new highs and 16 new lows.