Wall St falls as Microsoft forecast hits tech stocks, earnings disappoint
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Microsoft falls on dismal Q3 cloud outlook
Salesforce, Amazon, other cloud-based stocks drop
Tech shares lead sectoral declines on S&P 500
Boeing slides after missing Q4 revenue estimates
Indexes down: Nasdaq 2.0%, S&P 1.2%, Dow 0.7%
Adds details; updates prices to open
By Shreyashi Sanyal and Johann M Cherian
Jan 25 (Reuters) -Wall Street's main indexes dropped on Wednesday, with the Nasdaq down 2% as Microsoft's outlook weighed down technology stocks, while a bleak quarterly report from Boeing added to fears of a recession.
Shares of Microsoft MSFT.O fell 3.9% after it warned that growth in its lucrative cloud business could stall, while its PC unit continued to struggle. The S&P 500 technology index .SPLRCT shed 2.1% to lead declines among the 11 major sector indexes.
Amazon.com Inc AMZN.O, Salesforce Inc CRM.N and ServiceNow Inc NOW.N, which have substantial cloud businesses, fell between 2.5% and 4.5%.
Other major growth stocks, including Apple Inc AAPL.O, Alphabet Inc GOOGL.O and Tesla Inc TSLA.O, also dropped between 1.5% and 3.0%.
Growth stocks, however, have enjoyed a bounce in January after a battering last year, with investors now focused on earnings reports to assess the impact of the Federal Reserve's rate hikes and to gauge whether the renewed enthusiasm for these stocks will be sustained.
"The environment may look attractive because some of these cloud companies, like Salesforce, are down so much, but people are still skeptical because we're heading into weaker economic news," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"We still have inflation, we still have the Fed raising interest rates, we're seeing companies laying off thousands of peoples ... We're not completely through the cycle yet."
An overwhelming majority of traders expect the Federal Reserve to raise interest rates by another 25 basis points in its meeting next week.
They now see the terminal rate peaking at 4.91% in June, even as Fed policymakers have repeatedly backed taking rates above the 5% level. 0#FEDWATCH
Data later in the week is likely to show December personal consumption expenditure index (PCE) fell 0.1% from a 0.1% rise in the prior month. Fourth quarter GDP advance numbers are also awaited.
Dow Jones Industrial Average .DJI constituent, Boeing Co BA.N slipped 1.3% as the planemaker's losses widened in 2022 and it missed fourth-quarter revenue estimates.
At 10:07 a.m. ET, the Dow was down 227.63 points, or 0.67%, at 33,506.33, the S&P 500 .SPX was down 46.92 points, or 1.17%, at 3,970.03, and the Nasdaq Composite .IXIC was down 220.49 points, or 1.95%, at 11,113.79.
Abbott Laboratories ABT.N fell 0.7%, weighed down by lower-than-expected medical device sales in the fourth quarter.
In a bright spot, AT&T Inc T.N rose 6.2% on higher-than-expected quarterly subscriber additions, while Textron Inc TXT.N added 0.3% as revenue beat estimates, boosted by demand for its private jets.
News Corp NWSA.O jumped 8.0%, leading gains on the S&P 500, after Rupert Murdoch withdrew a proposal to reunite News Corp and Fox Corp.
Declining issues outnumbered advancers for a 3.92-to-1 ratio on the NYSE and for a 2.82-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and one new low, while the Nasdaq recorded 29 new highs and 16 new lows.
Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Additional reporting by Ankika Biswas; Editing by Vinay Dwivedi and Anil D'Silva
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
