Technology Companies Weighing Again On US Stocks; Oil Falls
AP Photo/Richard Drew, File
NEW YORK (AP) – A slide in technology companies weighed on U.S. stocks Friday, adding to the market's losses from a day earlier. Twitter plunged after the social media network said its monthly users declined in the second quarter. Smaller-company stocks fell more than the rest of the market. The losses outweighed gains in banks and phone companies.
KEEPING SCORE: The S&P 500 index fell 19 points, or 0.7 percent, to 2,817 as of 12:48 p.m. Eastern Time. The Dow Jones Industrial Average slid 89 points, or 0.4 percent, to 25,437. The Nasdaq composite index, which is heavily weighted with technology companies, lost 112 points, or 1.4 percent, to 7,739. The Russell 2000 index of smaller-company stocks gave up 27 points, or 1.6 percent, to 1,667.
Despite the sell-off, the S&P 500, the market's benchmark index, is still on track for its fourth weekly gain in a row.
SOCIAL MEDIA WOES: For the second straight day a social media company led a steep decline in technology companies, cutting into some of the market's gains. Twitter plummeted 19.6 percent to $34.52 after the company reported disappointing user totals and its forecast disappointed investors. Snap, the company behind the Snapchat messaging app, slid 6.3 percent to $12.53. Facebook shares dipped 0.7 percent to $175.01 a day after the social media giant led a slide in technology stocks that snapped the S&P 500's three-day winning streak. Facebook's steep drop, which erased nearly $120 billion of the company's market value, was brought on by its warning to investors that it sees slower revenue growth ahead.
NOT SO CHIPPER: Intel skidded 8.6 percent to $47.69 after the chipmaker's latest quarterly report left analysts concerned about the company's profit margins and key businesses.
PAIN AT THE PUMP: Exxon Mobil slid 2.6 percent to $82.03 after the oil company's quarterly profit fell far short of Wall Street estimates.
GOOD TRIP: Expedia Group surged 7.8 percent to $135.57 after the online travel portal's quarterly earnings topped analysts' forecasts.
TASTY RESULTS: Chipotle Mexican Grill climbed 4.4 percent to $466.26 after the restaurant chain said sales online and at established stores improved in its latest quarter.
DELIVERING THE GOODS: Amazon.com rose 0.8 percent to $1,822.52 after the online retailer reported its biggest profit ever as its advertising and cloud computing businesses kept growing.
OIL: Benchmark U.S. crude lost 33 cents to $69.28 per barrel in New York. Brent crude, used to price international oils, fell 2 cents to $75.10.
BOND YIELDS: Bond prices rose, sending yields lower. The yield on the 10-year Treasury fell to 2.96 percent from 2.97 percent late Thursday.
CURRENCIES: The dollar slipped to 110.95 yen from 111.23 yen on Thursday. The euro strengthened to $1.1652 from $1.1645.
STRONGER GROWTH: The U.S. economy surged in the April-June quarter to an annual growth rate of 4.1 percent. That's the fastest pace since 2014, driven by consumers who began spending their tax cuts and exporters who rushed to get their products delivered ahead of retaliatory tariffs.
MARKETS OVERSEAS: Major indexes in Europe rose. Germany's DAX added 0.4 percent and the CAC 40 in France gained 0.6 percent. Britain's FTSE 100 picked up 0.5 percent. In Asia, Japan's Nikkei 225 index rose 0.6 percent. The Kospi in South Korea picked up 0.3 percent. Hong Kong's Hang Seng index edged 0.1 percent lower.
-by AP reporter Alex Veiga