Nasdaq hits record high as Intel, IBM weigh on Dow

Reports from IBM and Intel disappoint

U.S. equity markets finished mixed Friday as weakness in technology was offset by strength in healthcare and discretionary names.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES31496.3+572.16+1.85%
JNJJOHNSON & JOHNSON156.12+3.10+2.03%
WMTWALMART, INC.129.18+1.72+1.35%

The Dow Jones Industrial Average fell 179 points or 0.57%, dragged lower by sizable losses in International Business Machine Corp. and Intel Corp. Strength from Walmart Inc. and Johnson & Johnson helped limit the decline.

TickerSecurityLastChangeChange %
INTCINTEL CORP.60.74+2.41+4.13%

International Business Machine Corp. reported revenue declined for a fourth straight quarter, down 6%, as corporate customers hoarded cash to ride out the pandemic. The company did not provide an outlook, but did say revenue is expected to grow in the current year.

While Intel Corp. posted record annual revenue, but investors were left disappointed as full-year profit slipped 0.9% from the year prior as customers purchased more lower-cost laptops that aren’t as profitable.  The chipmaker declined to give a full-year outlook ahead of the arrival of new CEO Pat Gelsinger.

In other corporate news, Walmart announced it has expanded coronavirus vaccine options to seven states. Johnson & Johnson said earlier this week it hopes to deliver 100 million doses of its COVID-19 vaccine by June or July.

TickerSecurityLastChangeChange %
WMTWALMART, INC.129.18+1.72+1.35%
JNJJOHNSON & JOHNSON156.12+3.10+2.03%

The S&P 500 slipped 0.30% while the Nasdaq Composite ticked up 0.09%, closing at a record high for the 3rd straight session.

TickerSecurityLastChangeChange %
SP500S&P 5003841.94+73.47+1.95%
I:COMPNASDAQ COMPOSITE INDEX12920.147675+196.68+1.55%

Investors are also monitoring developments on the next round of stimulus.

Republican Sens. Mitt Romney of Utah and Lisa Murkowski of Alaska on Thursday suggested it was too early to know if the economy needs President Biden’s proposed $1.9 trillion package that would extend larger stimulus checks and bigger unemployment benefits, among other things. They would prefer to wait and see how the economy responds to the $900 billion package that was passed last month.

In sector news, energy stocks tumbled with West Texas Intermediate crude down 86 cents to $52.27 a barrel on concerns about President Biden's forthcoming regulatory actions impacting U.S. oil leases. Additionally, increased lockdowns in China due to the coronavirus impacting the market.

Elsewhere, oilfield services provider Schlumberger Ltd. announced earnings and revenue that exceeded Wall Street estimates, bolstered by cost-cutting measures and a return in demand for its services and equipment.

TickerSecurityLastChangeChange %
XOMEXXON MOBIL CORP.60.85+2.18+3.72%
CVXCHEVRON CORP.108.84+4.39+4.20%
SLBSCHLUMBERGER NV29.08+0.51+1.79%

Ford Motor Co. recalled 3 million vehicles due to faulty airbags that will cost $610 million to fix.

TickerSecurityLastChangeChange %
FFORD MOTOR CO.12.27+0.34+2.85%

European markets were lower across the board with Britain’s FTSE 100 trading down 0.3%, Germany’s DAX 30 weaker by 0.24% and France’s CAC 40 losing 0.56%.

In Asia, Hong Kong’s Hang Seng index paced the decline, down 1.6%, while Japan’s Nikkei 225 and China’s Shanghai Composite index fell 0.44% and 0.4%, respectively.