* GE falls as quarterly profit slides nearly 60 pct
* EBay falls after profit warning
* Schlumberger, Visa rise after strong quarterly results
* Indexes down: Dow 0.30 pct, S&P 0.24 pct, Nasdaq 0.23 pct
(Updates to open)
By Tanya Agrawal
July 21 (Reuters) – U.S. stock indexes opened lower on
Friday, as industrial heavyweight General Electric’s tepid
results weighed on investor sentiment.
Shares of GE fell as much as 5.4 percent to their
lowest level since Oct 2015, despite the results beating
estimates, as the company reported a nearly 60 percent slump in
The stock was the biggest drag on the Dow and the S&P 500.
Honeywell International reversed course after market
opened and fell 0.7 percent despite the technology and
manufacturing company reporting a rise in its second-quarter
Microsoft fell 0.5 percent, despite the company
reporting strong fourth-quarter earnings.
Attention will turn to earnings from big tech names next
week, including Amazon, Alphabet and Facebook
The Nasdaq notched its 10th straight record close on
Thursday, marking its best streak since February 2015.
The tech sector has been the best performing S&P sector this
year, despite concerns over stretched valuation, as investors
look for growth in an otherwise low-growth environment and
sectors that are relatively immune from a policy gridlock in
“If tech earnings were to disappoint, it might finally be
the thing that causes a correction, even if it’s a small one,”
said J.J. Kinahan, chief market strategist at TD Ameritrade.
Still, overall earnings are expected to be good with
analysts expecting earnings to have climbed 8.6 percent, above
the 8-percent rise projected at the start of the month,
according to Thomson Reuters I/B/E/S. About 15 percent of S&P
500 companies have posted results so far.
“The earning season has been good so far and CEOs are also
painting a good picture. A lot of people are booking profits and
readjusting their positions. It’s been a pretty good year so far
and people are taking money off the table,” said Kinahan.
At 9:37 a.m. ET (1337 GMT), the Dow Jones Industrial Average
was down 65.65 points, or 0.3 percent, at 21,546.13, the
S&P 500 was down 6.08 points, or 0.24 percent, at
The Nasdaq Composite was down 14.92 points, or 0.23
percent, at 6,375.08.
Nine of the 11 major S&P sectors were lower, with the
industrials index’s 0.81 percent fall leading the
Visa rose 1.8 percent after the world’s largest
payments network operator reported a better-than-expected
quarterly profit and raised its annual earnings forecast.
EBay fell 2 percent as the company warned that
adjusted profit this quarter could fall below analysts’
Schlumberger, the world’s largest oilfield services
provider, was up 1.5 percent after it reported
better-than-expected quarterly profit and revenue.
Colgate-Palmolive fell 1.7 percent after its revenue
came in below estimates.
Advancing issues outnumbered decliners on the NYSE by 1,281
to 1,213. On the Nasdaq, 1,184 issues fell and 1,119 advanced.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)