* GE lower after profit slumps nearly 60 pct
* EBay falls after profit warning
* Schlumberger, Visa rise after strong quarterly results
* Futures down: Dow 27 pts, S&P 0.5 pts, Nasdaq 13 pts
(Adds details, comment, updates prices)
By Tanya Agrawal
July 21 (Reuters) – U.S. stock indexes looked set to open
slightly lower on Friday, as investors took cues from earnings
reports of industrial heavyweights General Electric and
Shares of GE fell 3 percent in premarket trading
after the company results beat estimates but posted a nearly 60
percent decline in profit.
Honeywell International edged up 0.1 percent after
the technology and manufacturing company reported a rise in its
Microsoft fell 0.8 percent, a day after the company
reported 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.
Stocks ended little changed on Wall Street on Thursday as a
deal between Sears and Amazon weighed on home
improvement retailers, along with weak earnings.
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.
Dow e-minis were down 27 points, or 0.13 percent,
with 15,598 contracts changing hands at 8:34 a.m. ET (1234 GMT).
S&P 500 e-minis were down 0.5 points, or 0.02
percent, with 118,646 contracts traded.
Nasdaq 100 e-minis were down 13 points, or 0.22
percent, on volume of 24,089 contracts.
Visa rose 0.8 percent after the world’s largest
payments network operator reported a better-than-expected
quarterly profit and raised its annual earnings forecast.
EBay fell 4 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 2.2 percent after its revenue
came in below estimates.
(Reporting by Tanya Agrawal; Editing by Arun Koyyur)