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US STOCKS-Wall St set to slip as IBM, Intel fall after results

Published 01/22/2021, 09:47 PM
Updated 01/22/2021, 09:50 PM
© Reuters.

© Reuters.

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window.)
* IBM hits two-month low on quarterly revenue miss
* Intel slips on avoiding outsourcing embrace
* Senate to vote on Yellen's Treasury secretary nomination
* Futures down: Dow 0.79%, S&P 0.73%, Nasdaq 0.62%

(Adds comment; updates share prices)
By Devik Jain and Medha Singh
Jan 22 (Reuters) - Wall Street's main indexes looked set to
open lower on Friday after hitting record levels, as shares of
blue-chip technology stalwarts Intel and IBM tumbled following
their quarterly results.
IBM Corp IBM.N slumped 8.2% and was the biggest loser
among Dow components trading premarket after it missed estimates
for quarterly revenue, hurt by a rare sales decline in its
software unit. Intel Corp INTC.O shed about 5% as new Chief Executive
Officer Pat Gelsinger's post-earnings comments suggested the
lack of a strong embrace of outsourcing. The S&P 500 and the Nasdaq ended at a record high on
Thursday on optimism about further pandemic aid under the Biden
administration.
"The near-term momentum (in stock markets) is likely to
carry forward," said Mark Heppenstall, chief investment officer
at Penn Mutual Asset Management in Horsham, Pennsylvania.
"Clearly with the Fed stepping on the gas, and with fiscal
stimulus likely in some additional form over the near term, you
get the sense that there is still a lot of liquidity out there."
The Senate Finance Committee will vote on Friday on Janet
Yellen's nomination for Treasury secretary, an early litmus test
of bipartisan support for President Joe Biden's ambitious plans
for coronavirus relief, infrastructure investment and tax hikes.
Biden has proposed a $1.9 trillion coronavirus relief plan
and has pledged to invest $2 trillion in infrastructure, green
energy projects, education and research. Some Republicans have
expressed concerns over its price tag. At 08:20 a.m. ET, Dow E-minis 1YMcv1 were down 244 points,
or 0.79%, S&P 500 E-minis EScv1 were down 28 points, or 0.73%.
Nasdaq 100 E-minis NQcv1 were down 83.5 points, or 0.62%.
Breakthroughs in COVID-19 vaccines have propelled the three
main U.S. stock indexes to record levels. The S&P 500 has
climbed more than 14% since the Nov. 3 elections, led by gains
in cyclicals such as energy and banks as well as small-cap
stocks.
However, with valuations approaching levels last seen in the
Dotcom era, many investors are hedging against possible market
turbulence that could erupt if surprise glitches hit the U.S.
rollout of COVID-19 vaccines. Investors will also keep a watch on IHS Markit's flash
readings on manufacturing and service sector PMIs for January.
Both are expected to slip due to pandemic-related restrictions
across the country.
Energy shares Chevron Corp CVX.N , ExxonMobil Corp XOM.N ,
Conocophillips COP.N , Marathon Oil Corp MRO.N and
shale-focused player Occidental Petroleum Corp OXY.N slipped
between 1.8% and 3.7%, mirroring a weakness in oil prices as
rising new coronavirus cases in China hit oil demand outlook.
O/R
Schlumberger NV SLB.N , the world's largest oilfield
services provider, joined rivals in predicting a steady recovery
in the oil industry this year. Still its shares fell 2.4%
tracking broader sector weakness.

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