Tech stocks knock down Wall Street as coronavirus cases spiral

In this news, we discuss the Tech stocks knock down Wall Street as coronavirus cases spiral.

(Reuters) – Major Wall Street indices fell on Friday, dragged down by a drop in tech heavyweight stocks in the wake of their quarterly results, with a record rise in coronavirus cases and nerves to the following the presidential election adding to a pessimistic mood.

All three major indices were on track for their worst week since March, as the spiraling coronavirus cases in the United States push hospitals to the brink of capacity.

The CBOE volatility index held its ground at a 20-week high before the last weekend before election day Tuesday.

Apple Inc fell around 5.2% after posting biggest quarterly decline iPhone sales in two years due to the late launch of new 5G phones.

Amazon.com Inc fell 4.1% after forecasting higher costs related to COVID-19, while Facebook Inc lost 6.2% on warning of a more difficult 2021.

Tech and the consumer discretionary sectors posted the largest percentage declines.

Communications services were boosted by a 3.9% rise in Alphabet Inc shares after Google’s parent beat quarterly sales estimates as companies resumed advertising.

“There is a big sale at these big names in tech because they haven’t lived up to the hype and people are really worried about next week’s election,” said Kim Forrest, director. investments at Bokeh Capital Partners in Pittsburgh.

President Donald Trump has always followed Democratic challenger Biden in national polls for months, but polls in more competitive states have shown a tighter race.

At 10:52 a.m. ET, the Dow Jones Industrial Average fell 423.74 points, or 1.58%, to 26,237.80, the S&P 500 lost 59.85 points, or 1.81%, to 3,250, 76 and the Nasdaq Composite lost 297.66 points, or 2.65%, to 10,888.81.

The third-quarter earnings season has passed its half, with about 84.8% of S&P 500 companies beating earnings estimates, according to data from Refinitiv. Overall, profit is expected to fall 13.4% from the previous year.

Twitter Inc fell about 20% after microblogging site reported fewer users than expected and warned that the US election could impact ad revenue.

AbbVie Inc gained 5% after the drugmaker posted better-than-expected quarterly profits and raised its adjusted full-year profit guidance.

Falling issues outnumbered those rising on the NYSE by a 3.9 to 1 ratio, while on the Nasdaq, a 0.3 to 1 ratio favored the advancers.

The S&P 500 posted two new 52-week highs and a new low, while the Nasdaq Composite recorded 12 new highs and 63 new lows.

Report by Medha Singh and Shivani Kumaresan in Bengaluru; Additional reporting by Susan Mathew; Editing by Arun Koyyur, Anil D’Silva and Shounak Dasgupta

Original © Thomson Reuters

Originally posted 2020-10-31 04:06:10.

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