Axios markets editor Dion Rabouin provides insight into the winners and losers in the ‘Biden market.’
U.S. stock futures 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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Dow Jones Industrial Average futures were weaker by 251 points, or 0.81%, while S&P 500 futures and Nasdaq Composite futures were down 0.15% and 0.55%, 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.
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.
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.
Ford Motor Co. recalled 3 million vehicles due to faulty airbags that will cost $610 million to fix.
In commodities, West Texas Intermediate crude oil lost $1.37 to $51.76 a barrel and gold slid $17.20 to $1,848.70 an ounce.
European markets were lower across the board with Britain’s FTSE 100 trading down 0.79%, Germany’s DAX 30 weaker by 0.83% and France’s CAC 40 losing 1.12%.
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.
