The S&P 500 and Nasdaq scored record closes yesterday
Stock futures are pointed lower to close out the week, as the tech sector pulls back and investors weigh the prospects of U.S. President Joe Biden's Covid-19 stimulus plan getting passed. Futures on the Dow Jones Industrial Average (DJI) are down nearly 210 points, with blue-chip tech names Intel (INTC) and IBM (IBM) set for steep post-earnings losses.
S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are positioned to retreat from record highs as well, with many Senate republicans already pushing back on the Biden administration's $1.9 trillion stimulus bill. Elsewhere, the Senate Finance Committee is expected to confirm former Federal Reserve Chair Janet Yellen as Biden's Treasury Secretary today.
Continue reading for more on today's market, including:
- Bulls charge toward Microsoft stock before earnings.
- This chip stock just notched fresh highs.
- Plus, IBM's sales whiff; more on Intel; and Ford recalls three million vehicles.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2.3 million call contracts traded on Thursday, and 945,883 put contracts. The single-session equity put/call ratio fell to 0.40 and the 21-day moving average fell to 0.42.
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IBM Common Stock (NYSE:IBM) stock is down 8.2% in pre-market trading, after the tech company's revenue missed the mark set by Wall Street. IBM saw a decline in sales as the pandemic has customers hesitant to strike long-term deals. Year-over-year, IBM is down 8.5% going into today.
- The shares of Intel Corporation (NASDAQ:INTC) are down 5% in electronic trading, despite the blue-chip giant reported earnings and revenue that topped analysts' forecasts for its latest quarter. The upbeat report was driven by a demand for personal computers and laptops, and Intel raised its quarterly dividend, but shares sunk after the company's CEO said Intel's products will be made in-house. Year-to-date, Intel stock is up 25.4%.
- Ford Motor Company (NYSE:F) is recalling three million vehicles due to an issue with airbag inflators that could potentially rupture. The recall includes 2.7 million in the U.S., and will cost the company $610 million. The equity is down 1.3% before the open, but up 31.2% already in 2021.
- To close out the week, the Markit manufacturing Purchasing Manager's Index (PMI), Markit services PMI, and existing home sales are featured today.
European Stocks Fall as Covid Cases Rise, Economic Data Disappoints
Markets in Asian ended the week lower. The Hang Seng in Hong Kong led the dip, falling 1.6% following news that oil name CNOOC will be removed from the MSCI ACWI and MSCI China All Shares indexes. This comes just one week after CNOOC was added to a list of firms barred from receiving U.S. goods. Meanwhile, China’s Shanghai Composite and the Japanese Nikkei fell 0.4%, while the South Korean Kospi dropped 0.6%.
Anxieties over the rapid spread of the coronavirus, as well as disappointing euro zone business activity data are keeping a lid on European markets today. The London FTSE 100 was last seen down 0.7%, dampened by a worse-than-expected rise in retail sales for December, as well as its steepest decline in business activity since May, according to the U.K.’s preliminary Purchasing Managers Index (PMI) for January. Elsewhere, the German DAX is also off 0.7%, while the French CAC 40 has taken a nearly 1% haircut.