Here are the top news, trends, and analysis investors need to get their trading day started:
1. Dow will fall back on technical weakness one day after the sector is strong
Traders on the floor of the New York Stock Exchange.
Source: New York Stock Exchange.
The Dow futures fell about 200 points on Friday as two old tech components, Intel and IBM, came under heavy pressure after the quarterly results were released late Thursday. During the regular trading session, technical strength, especially Apple, drove the Nasdaq to another record high. The S&P 500 hit another record close on Thursday, while the Dow Jones Industrial Average closed slightly lower after Wednesday’s record high. For the week, the Dow was up nearly 1.2%; the S&P 500 gained more than 2.5%; and the Nasdaq was up over 4%. All three benchmarks showed strong increases until the beginning of 2021.
Bitcoin fell below $ 30,000 late Thursday as the world’s largest cryptocurrency continued its decline around 2021 after quadrupling in value last year. Bitcoin has fallen more than 30% since its high of $ 41,940 earlier this month. The recent slump for no clear reason underscores the volatility of a currency that has become popular with day traders. The start-up last year was partly attributed to increasing institutional interest.
2. Intel and IBM fall after quarterly results are released
SVP and Director at IBM Research Arvind Krishna speak on stage during the Wired Business Conference 2016 in New York on June 16, 2016.
Brian Oh | Getty Images
IBM shares fell 7% on the Friday before going public, the morning after the company reported disappointing fourth-quarter sales of $ 20.37 billion. Software sales declined as uncertainty caused by pandemics prevented some customers from doing long-term deals. Under the new CEO Arvind Krishna, the company has tried to expand cloud computing and artificial intelligence. IBM’s adjusted quarterly earnings of $ 2.07 per share beat estimates.
Pat Gelsinger, CEO of VMware, speaks at the company’s VMworld conference in San Francisco in 2012.
Kim Kulish | Corbis News | Getty Images
Intel announced that its quarterly results were released earlier than expected minutes before the market closed on Thursday, as an infographic was released. Intel stock closed the regular session nearly 6.5% higher after earnings and sales topped estimates. But after hours, the stock fell about 4% after new CEO Pat Gelsinger said on the post-earnings call with analysts that the majority of the chipmaker’s 2023 products will be made in-house, not outsourced. Gelsinger, outgoing VMWare CEO, will take over IBM next month.
3. Bid to Sign Orders to Boost Food Achievements and Minimum Wage
President Joe Biden signs an executive order after speaking to U.S. Vice President Kamala Harris during an event about his administration’s Covid-19 response in the state dining room of the White House in Washington, Thursday, January 21, 2021.
Al Drago | Bloomberg | Getty Images
President Joe Biden plans to sign two executive orders on Friday to provide a stopgap financial solution to millions of Americans as lawmakers ponder his massive $ 1.9 trillion Covid stimulus package. The orders will increase food aid, protect job seekers from unemployment, and pave the way for federal workers and contractors to receive a minimum wage of $ 15 an hour. Biden took various measures in his early days as president to control the virus and provide economic relief. The size and scope of Biden’s stimulus package has already faced Republican opposition.
4. Fauci appears at the first White House press conference in months
Anthony Fauci, director of the National Institute for Allergies and Infectious Diseases at the NIH, speaks about the daily press conference at the White House in Washington on January 21, 2021.
Jonathan Ernst | Reuters
New data shows Covid vaccines may not be as effective against new, more contagious strains of the virus, said Dr. Anthony Fauci on Thursday in his first White House press conference in months. Some variants identified in the UK, South Africa and Brazil appear to be more transmissible, but not necessarily more deadly. Fauci also said he felt liberated to “let science speak” under the Biden administration. He added that he “took no pleasure” in contradicting some of the claims made by former President Donald Trump.
5. McConnell suggests starting the impeachment process against Trump in February
Senate Majority Leader Mitch McConnell speaks before the U.S. Senate votes to confirm President Donald Trump-appointed Judge Amy Coney Barrett as Associate Justice of the U.S. Supreme Court while sitting in the U.S. Capitol Senate Chamber in Washington , USA, meeting, October 26, 2020.
Senate TV | Reuters
Republican Senate Chairman Mitch McConnell is proposing to postpone the impeachment proceedings against Trump to February to give the former president time to prepare and review his case. House Democrats, who voted last week to indict Trump for inciting the deadly January 6 riot, have signaled that they want to go to court quickly when Biden begins his term. Chuck Schumer, majority leader of the now democratically controlled Senate, reviews McConnell’s plan.
– The Associated Press contributed to this report. Follow all developments on Wall Street in real time with CNBC Pro’s live market blog. Find out about the latest pandemics on our coronavirus blog.