Dow, SP Close Lower as IBM, Intel Weigh, Virus Fears Rise

0
54

NEW YORK, Jan 22 Reuters The Dow and SP 500 ended modestly lower on Friday, dragged down by losses in bluechip technology stalwarts Intel and IBM following their quarterly results, as hopes for a full economic reopening in the coming months waned.

IBM Corp slumped and was the top drag on the Dow Jones Industrial Average after it missed estimates for quarterly revenue, hurt by a rare sales decline in its software unit.

Intel Corp slipped as new Chief Executive Officer Pat Gelsingers postearnings comments suggested the lack of a strong embrace of outsourcing.

However, losses in the tech sector were offset by gains from Microsoft Corp, Apple Inc and Facebook Inc , keeping the declines on the main U.S. stock indexes in check and lifting the Nasdaq slightly.

Energy and financials were the worst performers among the 11 SP sectors on Friday, while the defensive utilities and real estate advanced.

Any delay or setback in the reopening theme is probably going to be a headwind for the energy sector, said Andrew Mies, chief investment officer at 6 Meridien in Wichita, Kansas.

Butthe market is telling you that its confidence in the cyclicals are diminished right now.

The SP 500 and the Nasdaq pared some losses shortly after the opening bell as data showed U.S. manufacturing activity surprisingly surged to its highest level in more than 1312years in early January, in contrast to a disappointing result in the purchasing manager data in Europe earlier.

Unofficially, the Dow…

LEAVE A REPLY

Please enter your comment!
Please enter your name here