Major US stock indices closed lower on Friday, driven by weakness in big tech companies, despite strong quarterly earnings reports released earlier in the week.
Cash Market Performance
In the cash market on Friday the benchmark index S&P 500 settled at 4181.17, a decrease of 30.30 or -0.72%. The blue chip Dow Jones Industrial Average finished at 33874.85, down 185.51 or -0.55% and the tech-driven NASDAQ Composite closed at 13962.68, down 119.87 or -0.86%.
Main monthly performance of the index
Most of the top 11 S&P 500 industry indices were lower, with technology and materials falling more than 1% while energy falling 2.2%.
Despite Friday’s weakness, the S&P 500 Index posted its third consecutive month of earnings in April, increasing the index by more than 5% as investors look to a strong economic and profitable recovery from the pandemic. The NASDAQ grew for six months in a row, driven by impressive results from large tech companies. The Dow Jones finished in positive territory for the third month in a row.
Stocks in motion
Amazon, Wall Street’s last mega-cap tech company to release results, posted record earnings in the first quarter. Despite the bullish news, the stock fell 0.11%.
Twitter pounced on user growth results and revenue forecast for the second quarter, which fell short of analysts’ forecasts. Twitter shares fell 15.2% on Friday.
Apple came under slight pressure after the European Union declared the company’s app store violated its competition rules. The shares fell 1.5%.
Chevron Corp. lost more than 3% after earnings fell 29% in the first quarter due to weaker refining margins and lost production.
AbbVie Inc. rose 0.6% after reporting strong results and increasing its profit forecast for 2021, helped by demand for its rheumatoid arthritis drug in the United States.
While mega-cap favorites largely posted strong gains in the first quarter, their stocks struggled to sustain the uptrend many saw during the reporting season.
Of the 303 companies in the S&P 500 that have reported so far, 87.1% have exceeded analysts’ earnings estimates. Refinitiv’s IBES data now predicts a 46.3% increase in earnings growth.
US business news
Data on Friday showed US consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic aid from the government. March spending rose 4.2% better than expected personal income rose a massive 21.1% on further fiscal stimulus.
Take a look at our economic events today Economic calendar.
These items was originally published on FX Empire