The front of the New York Stock Exchange (NYSE) will be seen on February 16, 2021 in New York, USA. REUTERS / Brendan McDermid
Futures pointed to a lower opening for Wall Street’s major indices on Tuesday, while investors this week used the results of Netflix and other major technology-related companies to maintain the positive start to the earnings season.
The streaming service provider Netflix (NFLX.O), which thrived during the closing period of last year, is the first of the so-called FAANG group to report quarterly numbers. Its shares declined 0.3% in pre-market trading, ahead of its results after the markets closed.
International Business Machines Corp (IBM.N) rose 2.7% as it recorded the largest increase in quarterly sales in more than two years, bolstered by its commitment to the high-margin cloud computing industry. read more
The chipmaker Intel Corp (INTC.O) will report its results on Thursday.
“We’re getting a little weak … even though earnings and economic data are good,” said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina.
“The underlying fundamentals are extremely strong and it will not be too worrying after the rally we have seen over the last 13 months that the market will get a little more breath due to strong earnings.”
Following the returns of major US banks last week, analysts expect first-quarter profit for overall S&P 500 companies to rise by 30.9% from a year earlier, according to Refinitiv IBES data.
A setback in longer-term yields from the 14-month highs eased concerns about higher borrowing costs, reviving demand for wealth-rich technology stocks. read more
A series of robust economic data and expectations of a strong recovery in corporate earnings also helped the S&P 500 and the Dow last week to break records.
At 08:32 ET, Dow E minis fell 154 points, or 0.45%, S&P 500 E minis, 18 points, or 0.43%, and Nasdaq 100 E minis, 48.75 points, or 0.35 %.
Tobacco companies, including Altria Group (MO.N) and Philip Morris (PM.N), fell to 4.2% after the Wall Street Journal reported that the government in Biden was considering a rule that would restrict nicotine or menthol in cigarettes would be prohibited.
Abbott Laboratories (ABT.N) fell 3%, despite a triple jump in quarterly earnings. read more
Nike Inc (NKE.N) fell 1.6% after Citigroup lowered its rating on the company’s shares to ‘neutral’ from ‘buy’.
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