Wall St eyes lower open as weak earnings updates dent sentiment
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Microsoft slips on disappointing Q3 cloud outlook
Salesforce, other cloud-based stocks fall
Boeing slides after missing Q4 revenue estimates
Futures down: Nasdaq 1.34%, S&P 0.88%, Dow 0.70%
Adds comment, details; updates prices
By Shreyashi Sanyal and Johann M Cherian
Jan 25 (Reuters) - Wall Street's main indexes were set to open lower on Wednesday as downbeat quarterly updates from Microsoft and Boeing added to fears of a recession.
Shares of thesoftwaregiantMSFT.O fell 2.7% in premarket trading after it warned that growth in its lucrative cloudbusiness could stall, while its PC unit continued to struggle.
Amazon.com IncAMZN.O, Salesforce Inc CRM.N and ServiceNow Inc NOW.N, which have substantial cloud businesses, fellbetween 1.3% and 3.0%.
Other large growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, alsodropped between 0.7% and 1.5%.
Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for such stocks will be sustained.
The S&P 500 Growth index .IGX has added over 4% in the month, reclaiming more than half of its losses from December.
"The environment may look attractive because some of these cloud companies, like Salesforce, are down so much, but people are still skeptical because we're heading into weaker economic news," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"We still have inflation, we still have the Fed raising interest rates, we're seeing companies laying off thousands of peoples ... We're not completely through the cycle yet."
Dow constituent, Boeing Co BA.N slipped 2.4% as the planemaker's losses widened in 2022 and it fell short of fourth-quarter revenue expectations.
At 8:29 a.m. ET, Dow e-minis 1YMcv1 were down 237 points, or 0.7%, S&P 500 e-minis EScv1 were down 35.5 points, or 0.88%, and Nasdaq 100 e-minis NQcv1 were down 159.75 points, or 1.34%.
AT&T Inc T.N rose 1.7% on reportinghigher-than-expected quarterlysubscriber additions, while Textron Inc TXT.Nadded 3% as the Cessna jet maker reported better-than-expected revenue,boosted by demand for its private jets.
Abbott Laboratories ABT.N slid over 1.5%weighed down by lower-than-expectedmedical device sales in the fourth quarter as COVID-19 lockdown restrictions in China and supply chain issues hit its international operations.
News Corp NWSA.Oadded 5% after Rupert Murdoch withdrew a proposal to reunite News Corp and Fox Corp.
Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Additional reporting by Ankika Biswas; Editing by Vinay Dwivedi and Anil D'Silva
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