Thursday October 6th, 2022 12:09AM

Stocks fall ahead of earnings from Big Tech companies

By The Associated Press

NEW YORK (AP) — Stocks fell in afternoon trading on Wall Street Tuesday as markets remain turbulent amid a busy week of earnings from some of the nation's biggest companies.

The S&P 500 fell 2% as of 2:48 p.m. Eastern. The Dow Jones Industrial Average fell 627 points, or 1.8%, to 33,427 and the Nasdaq fell 3%.

The slide for major indexes follows a mostly weak day on Monday that turned into a late rally, partially led by technology stocks after Twitter agreed to sell itself to Tesla CEO Elon Musk. The social media company fell 2.9% Tuesday, while Tesla slumped 11% over concerns that Musk will be distracted and less engaged in running the electric vehicle maker.

Technology stocks were once again directing the broader market and had some of the biggest losses. Companies in the sector, with their pricey values, tend to push the market up or down more forcefully. Microsoft fell 2.9% and Apple shed 2.8%. Both companies will report their latest financial results later Tuesday.

Retailers and other companies that rely on direct consumer spending also fell broadly. General Motors, which also reports its latest results later Tuesday, slipped 3.8%. Nike fell 5.2%.

General Electric fell 10.4% for one of the sharpest losses on the market after telling investors that inflation and other pressures are weighing on its profit forecast for the year.

Bond yields fell. The yield on the 10-year Treasury fell to 2.77% from 2.82% late Monday.

Energy companies gained ground along with a 3% rise in U.S. crude oil prices. Valero Energy rose 4.8%.

Stocks have been shaky recently, with the S&P 500 coming off a three-week losing streak. The tech-heavy Nasdaq is down 11% so far in April and is on track for its worst calendar month since the financial crisis in 2008. It is also now down about 21% from its record set in November.

“It’s the market getting a little more comfortable with a slowdown at best and recessionary fears at worst,” said Ross Mayfield, investment strategy analyst at Baird.

The last few days have been volatile as Wall Street also tries to assess how China's strict lockdown measures to fight COVID-19 will impact the broader global economy, including hurting demand in the world's second-largest economy. It could be prompting a resetting of expectations while Wall Street is also still focused on the Federal Reserve's plan to raise its benchmark interest rates this year.

“The market had gotten comfortable, to an extent, with the Fed, but when you layer on demand destruction in China, it’s a little much for the market to stomach,” Mayfield said.

Earnings remain a key focus of Wall Street for the rest of the week. Airplane maker Boeing reports its results on Wednesday, along with Facebook parent, Meta. Industrial bellwether Caterpillar reports its results on Thursday, along with McDonald's and Amazon.

Investors are closely reviewing the latest round of corporate report cards to get a better sense of how different industries are handling rising inflation, which has prompted many companies to raise prices. The results will also give a clearer picture of how consumers are reacting to higher prices on everything from food to clothing and gasoline.

In economics news, the Conference Board reported that consumer confidence dampened slightly in April but remains high. And on Friday the Commerce Department releases its personal income and spending report for March.

Persistently rising inflation has prompted the Fed to shift its monetary policy in order to aggressively fight inflation. The chair of the Fed has indicated the central bank may hike short-term interest rates by double the usual amount at upcoming meetings, starting next week. It has already raised its key overnight rate once, the first such increase since 2018.

Economists and investors are concerned that the U.S. economy might slow sharply or even fall into a recession because of the big interest-rate increases the Fed is expected to push through.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Utilities
© Copyright 2022
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Trial of 3 ex-officers in Floyd death won't be livestreamed
A Minnesota judge has ruled that the trial of three fired Minneapolis police officers charged with aiding and abetting George Floyd’s killing will not be livestreamed
10:28AM ( 18 minutes ago )
US consumers still confident in April, but slightly less so
U.S. consumer confidence dampened slightly in April but remains high and inflation concerns continue to weigh on their short-term outlook
10:15AM ( 31 minutes ago )
The B-52s to launch a US farewell tour this summer
The quirky dance-pop outfit The B-52s are hitting the road one last time for a final tour this summer that will roam from coast to coast
10:01AM ( 44 minutes ago )
Associated Press (AP)
Russia pounds eastern Ukraine as West promises Kyiv new arms
Russia has pounded eastern Ukraine as the U.S. defense secretary promised to “keep moving heaven and earth” to get Kyiv the weapons it needs to repel the new offensive
9:19AM ( 1 hour ago )
N. Korea's Kim vows to bolster nuke capability during parade
North Korean leader Kim Jong Un has vowed to accelerate the development of nuclear weapons and threatened to use them if provoked in a speech he delivered at a military parade that featured powerful missiles capable of targeting the country’s rivals
8:46AM ( 1 hour ago )
Wall Street heads for sluggish open following Monday rally
U.S. markets pointed to losses at the open as investors await a slew of major tech companies’ earnings reports in the next few days
8:44AM ( 2 hours ago )
AP National News
'Constantly depressing': Ukrainian town watches war close in
War has again drawn near to Toretsk in eastern Ukraine
5:34AM ( 5 hours ago )
Russia's war heats up cooking oil prices in global squeeze
Cooking oil prices have been rising worldwide since the COVID-19 pandemic began, and Russia's war in Ukraine has sent those costs spiraling
4:56AM ( 5 hours ago )
Beijing enforces mass COVID testing, closes neighborhoods
Beijing has been enforcing mass testing and closing down access to neighborhoods as China’s capital seeks to contain a new COVID-19 outbreak
4:27AM ( 6 hours ago )
AP Online National News
Winner of Slovenia vote hopes to form government by mid-June
The winner of last weekend parliamentary vote in Slovenia says he hopes to have a new government formed by mid-June
9:37AM ( 1 hour ago )
Live updates | Poland sanctions 50 Russian people, entities
Poland’s government says it is imposing sanctions on 50 Russian entities and individuals over Russia’s war against Ukraine
9:16AM ( 1 hour ago )
Live updates | Russia moves to expel Swedish diplomats
Sweden’s foreign minister has decried as “unjustified and disproportionate” a decision by Russia to expel several Swedish diplomats
8:54AM ( 1 hour ago )
AP Business
Global shares advance on back of rally on Wall Street
Shares have advanced in Europe after closing mostly higher in Asia, though Chinese shares skidded on renewed concerns over pandemic lockdowns
5:22AM ( 5 hours ago )
Asian shares advance on back of rally on Wall Street
Asian shares are mostly higher after U.S. stocks stormed back from sharp losses to log strong gains
2:20AM ( 8 hours ago )
Brazil court deals blow to massive Amazon gold mine project
A Brazilian federal court has upheld the suspension of an environmental license for what would be the largest open-pit gold mine in the nation’s Amazon rainforest, dealing a blow to the Canada-based company behind the project
8:17PM ( 14 hours ago )
AP Business - Corporate News
Virginia wind farm job claims questioned by state regulators
As Virginia-based Dominion Energy seeks to build what it calls the country’s largest offshore wind farm in the Atlantic Ocean, the company and its supporters have touted the economic development opportunities expected to accompany the 176-turbine project
6:13PM ( 16 hours ago )
Late buying push leaves stock indexes higher on Wall Street
A late wave of buying left major indexes higher on Wall Street after another day of up-and-down trading
4:15PM ( 18 hours ago )
Stocks recover much of their early losses on Wall Street
Stocks on Wall Street have erased their steep losses from the morning and are holding relatively steady on Monday, the latest in a string of topsy-turvy trading
3:14PM ( 19 hours ago )
AP Business - Economy
Survivors blame Lebanon navy for deadly migrant boat sinking
Survivors of a doomed migrant boat blamed the Lebanese navy on Sunday for sinking it, saying it was rammed by a naval vessel trying to force it back to shore
1:32PM ( 1 day ago )
Live updates | Zelenskyy, Erdogan discuss evacuation
Ukraine’s President Volodymyr Zelenskyy says he has discussed the evacuation of civilians from Mariupol in a call with Turkish President Recep Tayyip Erdogan
10:05AM ( 2 days ago )
Lebanese military finds 5 bodies from sunk migrant boat
State media is reporting that the Lebanese military has recovered the bodies of five migrants whose boat carrying nearly 60 people sank the night before, raising the death toll to six
8:20AM ( 2 days ago )
AP Business - Financial Markets
Russia hits rail and fuel targets far from the eastern front
Russia has unleashed a string of attacks against rail and fuel facilities deep inside Ukraine in an apparent attempt to thwart Ukrainian efforts to marshal supplies
8:22PM ( 14 hours ago )
White House: Without funding US will lose COVID treatments
After two years at the front of the line for COVID-19 vaccines and treatments, the U.S. could soon have to begin taking a number
6:25PM ( 16 hours ago )
Pass urgent COVID funding or more will die, White House says
After two years at the front of the line for COVID-19 vaccines and treatments, the U.S. could soon have to begin taking a number
6:22PM ( 16 hours ago )
AP Business - Industries
Russia's standing in G-20 not threatened by Ukraine invasion
Despite Russia's invasion of Ukraine, Moscow's membership in the Group of 20 remains firmly intact
8:54AM ( 3 days ago )
American Express profits fall slightly, but spending jumps
American Express’ first-quarter profits fell roughly 6% from a year earlier, but the company saw a 30% jump in spending on its namesake cards in the quarter as its cardmembers returned to their habits of shopping, traveling and dining
12:27PM ( 3 days ago )
Global shares decline on Fed chief's comments on inflation
Global shares have tracked losses on Wall Street after Federal Reserve Chair Jerome Powell indicated increases in interest rates must be faster to fight inflation
5:27AM ( 4 days ago )
AP Business - Financial Services
Live updates | Report: Sweden, Finland to apply to NATO
Two newspapers - one Swedish, the other one Finnish - are reporting that the governments of Sweden and Finland have agreed to submit NATO applications at the same time and that it will happen in the middle of next month
10:28AM ( 1 day ago )
Live updates | US: Sale approved for ammunition for Ukraine
The U.S. State Department says it has approved the sale of $165 million in legacy Warsaw Pact ammunition and other nonstandard ammunition to Ukraine to help in its defense against Russia
10:21AM ( 1 day ago )
Live updates | Russia expels 40 German diplomats
Russia is expelling 40 German diplomats in response to Germany expelling the same number of Russian diplomats earlier this month
9:56AM ( 1 day ago )
AP Business - Utilities
Trial of 3 ex-officers in Floyd death won't be livestreamed
A Minnesota judge has ruled that the trial of three fired Minneapolis police officers charged with aiding and abetting George Floyd’s killing will not be livestreamed
10:28AM ( 18 minutes ago )
US consumers still confident in April, but slightly less so
U.S. consumer confidence dampened slightly in April but remains high and inflation concerns continue to weigh on their short-term outlook
10:15AM ( 31 minutes ago )
Live updates | Russian forces hit key bridge in Ukraine
Ukrainian officials say the Russian military has hit a strategic bridge linking the southern Odesa region with neighboring Romania
9:59AM ( 46 minutes ago )
Big Tech leads US stock indexes lower ahead of earnings
Stocks are opening lower on Wall Street again, and big technology companies were leading the way lower ahead of a busy week of earnings reports from several of them
9:48AM ( 57 minutes ago )
Federer plans tournament return at Swiss Indoors in October
Roger Federer intends to return to tournament tennis after what will have been more than a year away from the tour by playing at the Swiss Indoors in October
9:44AM ( 1 hour ago )