Fretting about earnings

Dow and Nasdaq dip in early going as investors worry about slower earnings; IBM, General Electric and Citigroup in focus.

January 19 2007: 10:05 AM EST

NEW YORK (CNNMoney.com) -- Stocks slipped Friday morning as investors focused on the negatives in earnings news or forecasts from Dow components IBM, Citigroup and General Electric.

The Dow Jones Industrial average (down 14.74 to 12,553.19, Charts) lost a few points in the early going, while the broader S&P 500 (up 0.66 to 1,427.03, Charts) index was little changed.

The Nasdaq (down 2.48 to 2,440.73, Charts) composite was modestly lower.

Technology slumped and the broader market drifted Thursday, after Apple's earnings forecast raised concerns about the strength of earnings in the just-completed fourth quarter.

Those concerns remained in place Friday, as investors sorted through reports from a trio of big blue chips.

Big Blue itself, IBM (down $4.53 to $94.92, Charts), reported quarterly sales and earnings late Thursday that topped estimates, due to strength in services and its recent software acquisitions. However, investors took a 'sell the news' approach and sent shares lower. (Full story).

Citigroup (down $0.22 to $54.17, Charts) reported quarterly earnings Friday morning that fell from a year earlier, but also topped estimates. The financial behemoth also boosted its dividend. Shares slipped.

Also Friday morning, GE reported higher quarterly earnings that met estimates. However, the company also said it would restate financial results for the years 2001 through 2005, as well as the first three quarters of 2006. GE shares lost 1.5 percent. (Full story).

Additionally, GE (down $0.68 to $37.32, Charts) confirmed late Thursday that it will buy two diagnostic units from Abbott Laboratories (up $0.47 to $53.26, Charts) for $8.13 billion.

Treasury prices slipped, raising the yield on the benchmark 10-year note to 4.77 percent from 4.74 percent late Thursday.

In currency trading, the dollar was little changed versus the euro and inched higher versus the yen after hitting a nearly four-year high against the Japanese currency on Thursday.

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