US stock indices end mixed as Facebook parent company collapses

Wall Street delivered another mixed result for equities on Thursday, as disappointing quarterly results from several major tech companies offset gains elsewhere in the market.

The S&P 500 fell 0.6%, with about 44% of stocks in the benchmark index losing ground. The tech-heavy Nasdaq fell 1.6%, while the Dow Jones Industrial Average rose 0.6%.

Facebook’s parent company, Meta Platforms, plunged 24.6%, the biggest drop in the S&P 500 after reporting a second consecutive quarter of revenue decline amid declining ad sales and fierce competition from TikTok. It joined other technology and communications stocks, such as parent company of Google, Alphabet and Microsoft, in reporting weak results and worrying forecasts about advertising demand. Alphabet fell by 2.9% and Microsoft by 2%.

Amazon slumped 19% in after-hours trading after the retail giant released an estimate for sales in the last quarter of the year that was well below analysts’ forecasts. The stock fell 4.1% in regular trading before the release of its latest quarterly results.

Construction equipment maker Caterpillar rose 7.7% after handily beating analysts’ third-quarter earnings forecasts. The big gain helped boost the Dow with 30 companies.

Another drop in long-term government bond yields helped support stocks in companies that didn’t report quarterly results. The 10-year Treasury yield, which affects mortgage rates, fell to 3.91% from 4.01% at the end of Wednesday. The two-year interest rate fell from 4.42% to 4.30%.

“What you see is a little relieved,” said Megan Horneman, chief investment officer at Verdence Capital Advisors. “The earnings aren’t great, but they aren’t terrible either.”

The S&P 500 fell 23.30 points to 3,807.30 points. The Dow rose 194.17 points to 32,033.28. The Nasdaq fell 178.32 points to 10,792.67.

Shares of smaller companies held up better than the broader market. The Russell 2000 index added 1.99 points or 0.1% to 1,806.32.

Excluding the Nasdaq, the major indices are on track for weekly gains. And the S&P 500 remains firmly on track to end October in the green.

Earnings have been the main focus for Wall Street this week, but markets received encouraging economic news on Thursday as the government reported that the US economy grew again last quarter, growing 2.6%. That marks a turnaround after the economy contracted in the first half of the year.

The economy is under pressure from stubbornly hot inflation and the Federal Reserve’s efforts to raise interest rates to lower prices. The central bank is trying to slow economic growth by raising interest rates, but the strategy threatens to go too far and trigger a recession.

Rising interest rates have made borrowing more difficult, especially with mortgage rates. The average long-term mortgage rate in the US hit 7% this week for the first time in more than two decades.

The latest economic data is being watched closely for signs of a slowdown or that inflation could ease as Wall Street tries to determine if and when the Fed could withdraw its rate hikes.

The central bank is expected to raise interest rates another three-quarters of a percentage point at its next meeting in November. But traders have become more confident that it will fall back to a more modest 0.50 percentage point gain in December, according to CME Group.

Central banks around the world have also raised interest rates in an effort to tame inflation. The European Central Bank announced another excessive rate hike on Thursday. The markets in Europe were mixed.

Wall Street has more earnings to review Friday, including Exxon Mobil, Chevron and Charter Communications.

Meanwhile, S&P Dow Jones Indices said on Thursday that insurer Arch Capital Group will replace Twitter in the S&P 500 index before opening trading on Tuesday. The move comes ahead of Elon Musk’s acquisition of Twitter in a transaction expected to close Friday.

Joe McDonald and Matt Ott contributed to this report.

Invalid username / password.

Please check your email to confirm and complete your registration.

Use the form below to reset your password. Once you’ve sent your account email address, we’ll send you an email with a reset code.

” Previous

Transgender student at University of Maine System alleges discrimination

Next one ”

Twelve jurors sit for Trump Organization tax fraud case

related stories

Load related posts

Leave a Comment