US futures dip as Intel offsets China data

Comment on this story
IOL wall street THE PHOTO HOLIC File image

US stock index futures were slightly lower on Friday after a disappointing earnings outlook from Intel offset news of better-than-expected economic growth in China.

* Shares of Intel Corp slumped 4.9 percent at $21.57 in premarket trading after the tech company forecast quarterly revenue that missed expectations. A sharp increase in capital spending plans for the year also concerned analysts.

* China's economy grew at a modestly faster-than-expected 7.9 percent in the fourth quarter of last year, the latest sign the world's second-biggest economy was pulling out of a post-global financial crisis slowdown which saw it grow last year at its weakest pace since 1999.

* Investors have focused on earnings this week and S&P 500 company earnings are expected to have risen 2.3 percent in the fourth quarter, Thomson Reuters data showed. Expectations for the quarter have dropped considerably since October, when a 9.9 percent gain was estimated.

* S&P 500 futures fell 0.5 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were down 3 points, and Nasdaq 100 futures lost 11 points.

* General Electric reported a rise in earnings for the fourth-quarter, pushing its shares up 2.5 percent at $21.83.

* Stronger-than-expected economic data helped send the S&P 500 to its highest level in five years on Thursday. The index is now just 5.6 percent from a record closing peak of 1,565.15.

* AT&T warned after Thursday's closing bell that it will take a fourth-quarter charge of about $10 billion due to bigger-than-expected pension obligations. Shares of the telephone company fell 1.2 percent to $32.80 in premarket trading Friday.

* On the economic front, a report on consumer sentiment in early January will be released at 9:55 am ET (16:55 SA time). - Reuters

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines