Google parent Alphabet ( GOOG ) is also likely to see early weakness after reporting weaker than expected first quarter results. It fell to about 111.75 against the dollar, more than 2%, after Bloomberg reported that the Bank of Japan was thinking about offering a negative rate on some loans to help banks lend.
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Global stock markets were mostly lower Friday after Wall Street broke a three-day winning streak and declined.
The Dow Jones industrial average eked out a tiny gain, while the Standard & Poor’s 500 index closed essentially flat.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.6 percent, a day after it hit its highest level since early November.
“Today might be a little bit of profit-taking after such a big run here”, said Jeff Kravetz, regional investment strategist at U.S. Bank’s Private Client Reserve.
The Dow gained 21.23 points, or 0.1%, to end at 18,003.75.
The benchmark S&P 500 index in recent days has rallied to within 1 percent of its May record high, buoyed by a softer dollar and recovering crude prices.
The Nasdaq Composite edged down 0.07 percent to 4,944.86.
Oil prices also fell, extending losses for the battered energy sector.
The S&P 500 is already up more than 2 per cent this year, meaning that any further gains would come at the expense of a higher multiple. Range Resources jumped $2.58, or about 7 per cent, to $39.75, while Chesapeake Energy climbed 36 cents, or 5.8 per cent, to $6.55.
Murphy Oil climbed $1.31, or 4.1 percent, to $32.94.
ENERGY: Benchmark U.S. crude oil was down 29 cents, or 0.7 percent, at $43.89 a barrel in NY after.
GAINING STEAM: Norfolk Southern jumped 8.2 percent after the railroad operator slashed costs during its latest quarter. The stock rose $7.78 to $90.41.
Shares of Microsoft slumped by 7.2 percent after the software giant reported adjusted third quarter earnings and revenues that came in below analyst estimates. The stock shed $2.21 to $37.80.
JAVA JITTERS: Starbucks dropped 5.2 percent after the coffee chain reported disappointing sales growth for the first three months of the year. Among utilities stocks, Consolidated Edison lost 3.2%. While the Dow and the S&P 500 showed only modest moves on the day, the tech-heavy Nasdaq saw a significant drop. American Express shares were up 1.1 percent after revenue rose for the first time in five quarters and Yum Brands up 1.2 percent, while Mattel sank 5.5 percent after sales fell.
Despite the declines, investors seemed to conclude that the issues driving lacklustre results at Alphabet and Microsoft were largely confined to those companies, Davidson said.
“Investors are looking for clarity on two major catalysts – earnings season and the Fed”, said Adam Sarhan, chief executive of Sarhan Capital in NY. “Energy has to be part of that”.
Traders work on the floor of the New York Stock Exchange (NYSE) in lower Manhattan in, New York, U.S …
Germany’s DAX is down 0.2 percent at 10,417 while the CAC-40 in France has fallen 0.1 percent at 4,579. Britain’s FTSE 100 fell 0.4 percent.
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Gold futures are now trading at $1,248.70 an ounce, down $1.60 from the previous session’s close of $1,250.30 an ounce.
