U.S. Stock ETFs Dip on Lackluster Results from Tech Giants | ETF Trends

U.S. markets and stock exchange traded funds slipped Friday after disappointing earnings results out of Intel and IBM, along with growing concerns over the spike in coronavirus cases across the country.

On Friday, the Invesco QQQ Trust (NASDAQ: QQQ) fell 0.1%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was down 0.3%, and iShares Core S&P 500 ETF (NYSEArca: IVV) dropped 0.2%.

Among the big earnings reports on Friday, IBM Corp plunged downwards. It was the top drag on the Dow Jones Industrial Average after it missed estimates for quarterly revenue due to a rare sales decline in its software unit. Meanwhile, Intel retreated after new Chief Executive Officer Pat Gelsinger’s post-earnings comments indicated a dearth of strong outsourcing, Reuters reports.

“We are going to be in a broader bull market, but there are going to be these periods where the market needs to blow off some steam … some of that euphoria needs to get washed out,” Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, told Reuters.

Adding to the market concerns, President Joe Biden warned that the U.S. death toll from the ongoing Covid-19 pandemic will likely push past 500,000 next month.

“That really just underlines that there are still challenges ahead and that’s giving some of the more bullish investors on the market a reason to pause before buying any more stocks,” Gokhman said.

The broader markets also seem to have taken pause after a strong January start, with money managers warning of no clear catalyst for any one direction ahead, the Wall Street Journal reports. While some have been optimistic over a solid start to earnings season, others are concerned over the high valuations.

“With a lack of new ammunition, people are simply stopping off,” Lars Skovgaard Andersen, investment strategist at Danske Bank Wealth Management, told the WSJ.

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