U.S. Stocks Slide As Greece Concerns, Mixed Earnings Weigh
Tuesday, January 24, 2022 12:29 PM

U.S. stocks extended their losses in mid-day trading as talks to cut Greece's huge debt burden hit a deadlock with mixed corporate earnings also denting the sentiment. The International Monetary Fund (IMF) has sharply slashed its world growth outlook this year, saying prospects have dimmed and risks to financial stability have increased.

S&P 500 Index lost 0.28 percent to trade at 1,312.35. The Dow Jones Industrial Average fell 0.36 percent to 12,662.50. The Nasdaq Composite Index inched down 0.01 percent to 2,783.83.

The IMF warned that the euro area would fall into a mild recession in 2012 after the euro area crisis entered a “perilous new phase” toward the end of last year. It now forecasts growth in the euro area at a negative 0.5 percent this year, down 1.6 percent relative to its prior projection. The IMF cut its global growth outlook for this year by 0.7 percent to 3.3 percent.

On the economic front, the focus will be on a two-day Federal Open Market Committee meeting that gets underway.

In corporate news, Apple Inc. (NASDAQ: AAPL), Advanced Micro Devices Inc. (NYSE: ADM) and Yahoo Inc. (NASDAQ: YHOO) are among major companies reporting their quarterly numbers after the markets close today.

Verizon Communications Inc. (NYSE:VZ) fell 1.8 percent to $37.71 after the communications services giant posted lower-than-expected quarterly earnings. Excluding items, Verizon earned 52 cents a share, missing Wall Street projections by a penny. The company slipped to huge quarterly loss due to an adjustment for the value of its pension plans. Verizon posted a net loss of $2.02 billion or 71 cents a share, compared with earnings of $2.64 billion or 93 cents per share a year ago. 

CSX Corp. (NYSE:CSX) dropped 3.7 percent to $21.85 after the transportation supplier posted quarterly earnings per share of 43 cents, trailing Wall Street projections by a penny. It also appointed Oscar Munoz as chief operating officer and Fredrik Eliasson as chief financial officer, effective immediately.

VMware Inc. (NYSE:VMW) jumped 8.3 percent to $93.13 after the provider of virtualization services reported non-GAAP earnings of 62 cents a share for the fourth quarter, beating analysts' expectations of 60 cents. Revenue surged 27 percent to $1.06 billion, above consensus of $1.05 billion. The company guided first quarter and 2012 revenue in-line with consensus.

InterDigital Inc. (NASDAQ: IDCC) dropped 19 percent to $35.83 after the telecommunications company ended its strategic review without an offer for the company.

Polycom Inc. (NASDAQ:PLCM) advanced 18.5 percent to $21.84 after the provider of telepresence and video services reported quarterly non-GAAP earnings per share of 41 cents that topped Wall Street projections of 29 cents. Revenue grew to $407 million from $340 million, while analysts' expected $401.3 million.  

McDonald's Corp. (NYSE: MCD) slid 1.9 percent, Johnson & Johnson (NYSE: JNJ) inched 0.38 percent and Peabody Energy Corp. (NYSE:BTU) fell 4.4 percent following their quarterly reports.

The European markets ended in red, with U.K. FTSE 100 closing 0.67 percent lower. German DAX30 lost 0.41 percent and French CAC 40 dropped 0.57 percent.
In the currency market, the euro inched 0.07 percent lower against the U.S. dollar to 1.3004, while the British pound gained 0.19 percent against the greenback. The dollar dropped 0.95 percent against the Japanese yen to 77.7625.
Crude oil futures lost 0.64 percent to $98.94/barrel, and gold futures fell 0.66 percent.