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* Intel set to hit four-month low
* Disney falls after postponing “Mulan” release indefinitely
* Goldman Sachs up after $3.9 bln settlement for 1MDB dispute
* Futures down: Dow 0.35%, S&P 0.37%, Nasdaq 1.01% (Adds quote, details; Updates prices)
July 24 (Reuters) - Sino-U.S. tensions and fears over mounting COVID-19 cases were set to weigh on Wall Street’s main indexes at the open on Friday, while shares in Intel slumped after it flagged delays in developing new chip technology.
For the third straight day United States recorded more than 1,100 deaths related to the novel coronavirus, which has infected about 4 million Americans.
Walt Disney Co postponed the debut of its movie “Mulan” indefinitely, sending its shares down 2.3% premarket.
Leading declines among components of the Dow index trading premarket, Intel Corp fell 13.8% after the company said it was six months behind schedule in developing next-generation, power-efficient chip technology and it would consider farming out more work to outside semiconductor foundries.
Rival Advanced Micro Devices Inc gained 7%.
The S&P 500 pulled back from a five-month high on Thursday, weighed down by losses in technology stocks, a surprise increase in U.S. jobless claims and Washington’s tug-of-war over stimulus measures.
“Yesterday we saw a slowdown in the labor market recovery ... if that type of data starts to manifest itself in manufacturing and services numbers, such as the PMIs, then that will cause more concern of a further downdraft,” said Keith Buchanan, portfolio manager at GLOBALT Investments in Atlanta.
“Confirmation that the economy is getting itself out of this deep hole would keep the momentum higher, but anything less, even a stagnation will not be well received at all.”
Optimism about a potential coronavirus vaccine and fiscal stimulus package has helped the benchmark S&P 500 recoup all of its losses for the year and rise 0.1%.
On the economic calendar, Markit business surveys for June are due at 9:45 a.m. ET, while new home sales data is expected at 10 a.m. ET.
Sentiment took a hit earlier in the day after Beijing ordered Washington to close its consulate in the city of Chengdu, days after U.S. ordered the closure of the Chinese consulate in Houston.
At 8:37 a.m. ET, Dow e-minis were down 93 points, or 0.35%, and S&P 500 e-minis were down 12 points, or 0.37%.
Futures tracking the Nasdaq 100 index were down 106.5 points, or 1.01%, as high-flying companies such as Amazon.com Inc, Apple Inc and Microsoft Corp , which were pivotal in driving the stock market’s recovery in recent months, slipped between 1.0% and 1.6%.
Of the 113 S&P 500 companies that have reported quarterly results, 77% of them have beaten dramatically lowered profit estimates, according to IBES Refinitiv data.
Credit card issuer American Express Co slipped 1.2% after it reported an 85% slump in quarterly profit.
U.S. investment bank Goldman Sachs Group Inc rose 0.6% after reaching a $3.9 billion settlement with the Malaysian government over the multi-billion-dollar 1MDB scandal. (Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru; Editing by Shounak Dasgupta)
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