1. Dow set to drop on tech weakness, a day after strength in the sector
Dow futures fell about 200 points Friday as two old-guard tech components, Intel and IBM, came under heavy pressure after releasing quarterly results late Thursday. During the regular trading session, tech strength, particularly from Apple, led the Nasdaq to another record high close. The S&P 500 eked out another record close Thursday, while the Dow Jones Industrial Average closed slightly lower after Wednesday’s record high close. For the week, the Dow was up nearly 1.2%; the S&P 500 was up more than 2.5%; and the Nasdaq was up over 4%. All three benchmarks have logged strong gains to start of 2021.
Bitcoin tumbled below $30,000 late Thursday as the world’s biggest cryptocurrency continued its 2021 slide after quadrupling in value last year. Bitcoin has dropped more than 30% since peaking at an all-time high of $41,940 earlier this month. The latest plunge, which comes without any clear reason, underscores the volatility of a currency that’s become popular among day traders. Last year’s runup has been attributed in part to increasing institutional interest as well.
2. Intel and IBM tumble after releasing quarterly results
Shares of IBM fell 7% in Friday’s premarket, the morning after the company reported disappointing fourth-quarter revenue of $20.37 billion. Software sales declined as pandemic-induced uncertainty kept some customers from striking long-term deals. The company has sought to go bigger in cloud computing and artificial intelligence under new CEO Arvind Krishna. IBM’s adjusted quarterly earnings of $2.07 per share did beat estimates.