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* Futures down: Dow 0.78%, S&P 0.84%, Nasdaq 0.17%
By Devik Jain
Jan 27 (Reuters) - U.S. stock index futures slipped on
Wednesday as a busy week of earnings gained momentum, with
upbeat results from Microsoft cushioning the fall in Nasdaq
futures ahead of the Federal Reserve's policy statement later in
the day.
Microsoft Corp MSFT.O gained 2.3% premarket, as the
software maker continues to benefit from remote working and
learning trends globally. Microsoft's results set a positive precedent for other
technology-related companies including Apple Inc AAPL.O , Tesla
Inc TSLA.O and Facebook Inc FB.O , which are set to report
quarterly numbers later in the day.
Tech companies have recently come back into favor after
blowout results from streaming service provider Netflix Inc
.NFLX.O , and as investors dumped economy-linked banks, energy
and small cap stocks.
However, concerns about heightened stock market valuations,
raging coronavirus cases and any potential disruption to vaccine
rollouts have spooked investors about a pullback and increase in
volatility in the near-term.
The Fed is expected to keep monetary policy locked in
crisis-fighting mode at its meeting ending on Wednesday, with
investors also looking forward to relief from ongoing
vaccinations and new government spending plans. There is a high risk of a resurgence in COVID-19 infections
derailing the world economy this year, according to a majority
of economists in a Reuters poll, who forecast global GDP would
reach pre-pandemic levels within two years. At 7:12 a.m. ET, Dow e-minis 1YMcv1 were down 241 points,
or 0.78%, S&P 500 e-minis EScv1 were down 32.25 points, or
0.84%, and Nasdaq 100 e-minis NQcv1 were down 23.5 points, or
0.17%.
Boeing Co BA.N posted a record annual loss of $11.94
billion and said it would delay its all-new 777X jet again. The
planemaker's shares were 0.7% higher. Starbucks Corp SBUX.O fell 1.9% after the coffee chain
reported a larger-than-expected fall in quarterly sales, as the
renewed surge in coronavirus cases in the United States kept
customers at home. Walgreens Boots Alliance Inc WBA.O jumped 6.4% after the
drugstore chain named outgoing chief operating officer of
Starbucks, Roz Brewer, as its chief executive officer.
Videogame retailer GameStop Corp's GME.N shares surged
another 75.4% on Wednesday, as amateur investors continued to
pile into the stock that has skyrocketed nearly 700% over the
past two weeks.