US: Stocks decline as Intel, IMB tumble

[NEW YORK] Wall Street stocks pulled back from records Friday following disappointing earnings reports from IBM and Intel, and as investors digested a spate of executive orders from US President Joe Biden.

Dow member IBM plunged more than 10 per cent as it reported another drop in quarterly revenue, while fellow blue-chip Intel shed nearly six per cent despite reporting better-than-expected results as the chipmaker faces calls to outsource its manufacturing operations.

Analysts said the pullback was unsurprising following a heady run by the market since the November elections.

About 30 minutes into trading, the Dow Jones Industrial Average was down 0.6 per cent at 31,004.65.

The broad-based S&P 500 dipped 0.3 per cent to 3,842.07, while the tech-rich Nasdaq Composite Index was down a hair at 13,529.44. Both the S&P 500 and Nasdaq ended at records Thursday.

Investors have been encouraged by Mr Biden's efforts to improve the coronavirus vaccine rollout and his call for Congress to enact an aggressive US$1.9 trillion stimulus package.

AFP

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