IBM
Corp slumped 7.4% and was the biggest loser among Dow components
trading premarket after it missed estimates for quarterly
revenue, hurt by a rare sales decline in its software unit.
Intel Corp dropped about 4% as new Chief Executive Officer Pat
Gelsinger signaled the lack of a strong embrace of outsourcing.
The S&P 500 and the Nasdaq ended at record levels on Thursday on
optimism about further pandemic aid under the Biden
administration to help the economy recover from a steep
downturn.
The Senate Finance Committee will vote on Friday on Janet
Yellen's nomination for Treasury secretary, an early litmus test
of bipartisan support for President Joe Biden's ambitious plans
for coronavirus relief, infrastructure investment and tax hikes.
Biden has proposed a $1.9 trillion coronavirus relief plan and
has pledged to invest $2 trillion in infrastructure, green
energy projects, education and research. Some Republicans have
expressed concerns over its price tag.
At 06:44 a.m. ET, Dow E-minis were down 269 points, or 0.87%,
and S&P 500 E-minis were down 30 points, or 0.78%. Nasdaq 100
E-minis were down 85.25 points, or 0.64%.
Breakthroughs in COVID-19 vaccines have propelled the three main
U.S. stock indexes to record levels. The S&P 500 has climbed
more than 14% since the Nov. 3 elections led by gains in
cyclicals such as energy and banks as well as small-cap stocks.
However, with valuations approaching levels last seen in the
Dotcom era, many investors are hedging against possible market
turbulence that could erupt if surprise glitches hit the U.S.
rollout of COVID-19 vaccines.
Investors will also keep a watch on IHS Markit's flash readings
on manufacturing and service sector PMIs for January. Both are
expected to slip due to pandemic-related restrictions across the
country.
(Reporting by Devik Jain in Bengaluru; Editing by Anil D'Silva)
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