Technology stocks tank on Wall Street as stock markets go into reverse

Ann Santiago
October 30, 2018

Intel Corp defied weakness to gain 3.6 percent after its better-than-expected quarterly results, though interim Chief Executive Officer Bob Swan said trade tensions with China could be a "headwind" next year.

Oil was flat overnight, while copper prices fell and iron ore rose.

United States stocks fell in Friday trade as a technology sell-off rattled global markets. In Asia, Japan's benchmark Nikkei 225 lost 0.4 percent, while South Korea's Kospi dropped 1.8 percent.

The S&P 500 index slid 46.88 points, or 1.7 percent, to 2,658.69.

The company also raised its estimates for the year, citing faster orders for aircraft.

Disappointing quarterly results and outlooks have stoked investors' jitters over future growth in corporate profits, a key driver of the stock market.

ENERGY: Benchmark U.S. crude fell 0.7 percent to $66.88 a barrel in NY. The Nasdaq composite added 185 points, or 2.6 percent, to 7,393.

USA stocks plunged on Friday as grim earnings reports from Amazon and Alphabet rekindled a rush to dump technology and high-growth stocks, but data showing economic growth in the last quarter slowed less than expected provided some relief.

With both Google and Amazon missing analysts' estimates in their Q3 earnings reports, both the S&P 500 Technology and Communication Services came under pressure on Friday to end the day 1.9% and 2.4%, respectively.

The index's tech giants felt the plunge: Facebook lost 5.4 percent; Amazon, 6 percent; Apple, 3.4 percent; and Netflix was down 9.4 percent.

Amazon's shares slumped by 7.6 per cent after they gave a discouraging outlook ahead of the Christmas shopping season, the biggest drop in the company's value for four years. Australia's leading benchmark, ASX 200, also fell sharply during morning trading, shedding more than two percent.

United Parcel Service slid 5.5 percent to $107.93 after the shipping company reported weak worldwide revenue, while the strong dollar and high fuel prices also hurt its results.

Bond prices rose, sending yields lower.

The news comes despite data that showed the USA economy was growing at a rate of 3.5 per cent in the third quarter.

The Dow Jones Industrial Average fell 50 points, or 0.2 per cent, to 25,138.

Microsoft jumped 4.3 percent and Ford climbed 5.7 percent after releasing encouraging results and forecasts. A correction is when shares drop at least 10 percent from their recent highs. The yield on the 10-year Treasury note rose to 3.14 percent from 3.12 percent.

US stocks plunged again on Wednesday, confirming a correction for the Nasdaq and erasing the Dow and the S&P 500's gains for the year, as disappointing forecasts from chipmakers and weak home sales data fueled jitters about economic and profit growth.

Boeing was one of the few gainers Wednesday.

It rose 1.3 per cent to Dollars 354.65 after the defence contractor's latest quarterly results topped analysts' forecasts. The euro rose to $1.1408 from $1.1393.

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