Big Tech weakness drags US stocks lower
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Stock futures resumed their march downward after a brief reprieve on Thursday, as concerns about coronavirus lockdowns and worries over quarterly results from tech giants dampened sentiment.
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Dow futures were off 261 points, a decline of 1%, while the tech-heavy NASDAQ Composite fell 1.2%, led by declines in Apple Inc., Amazon.com Inc. and Facebook Inc.
|I:DJI||DOW JONES AVERAGES||26659.11||+139.16||+0.52%|
|I:COMP||NASDAQ COMPOSITE INDEX||11185.592838||+180.72||+1.64%|
The broader S&P 500 was also sharply lower, falling 1%.
NASDAQ LEADS STOCK REBOUND AHEAD OF BIG TECH EARNINGS
Despite better-than-expected results from the Big Tech companies — Amazon, Google parent Alphabet, Facebook, Apple and Twitter — concerns about COVID-19's effects on the global economy resulted in sharp declines for all, save for Alphabet, whose shares rose nearly 7% in early Friday trading.
Apple, which tumbled nearly 4%, said its subscription bundle, Apple One, would launch Friday, according to Chief Financial Officer Luca Maestri, as it increasingly focuses on services to boost revenue.
COVID-19 cases continue to rise, with the U.S. topping its single-day high in new cases Thursday at 89,940 infections. The total number of people in the country infected by the virus has topped 9 million, with at least 228,000 deaths attributed to it, according to data provided by Johns Hopkins University.
Concerns of a so-called "second wave" have reemerged not only in the U.S. but in Europe as well, with Germany, France and Italy putting in fresh lockdown measures to slow the spread of the virus.
European markets were also lower Friday, with the Euro STOXX 50 declining by 0.6% and the broader STOXX Europe 600 index also lower.
|HON||HONEYWELL INTERNATIONAL INC.||164.60||+3.44||+2.13%|
Dow component Chevron said its quarterly revenue fell more than 30%, as demand for oil continued to wane. Shares were up less than 1% in early Friday trade.
Honeywell, another member of the 30-stock index, fell more than 2% after it also reported quarterly drops in revenue and earnings.
|XOM||EXXON MOBIL CORPORATION||32.97||+1.40||+4.43%|
|MO||ALTRIA GROUP INC.||36.87||+0.15||+0.41%|
|UA||UNDER ARMOUR INC||12.04||+0.38||+3.26%|
Other notable earnings on Friday included ExxonMobil, biotech firm Abbvie, Altria, Colgate-Palmolive and apparel maker Under Armour.
Personal income rose 0.9%, compared to expectations of 0.3%, while spending rose 1.4%, also ahead of expectations.
At 10 a.m., investors will get the final look at consumer sentiment from the University of Michigan, with economists forecasting a final reading of 81.2, slightly higher than the previous reading of 80.4.
Chicago PMI data will also be released Friday, with traders looking for a reading of 59, indicating expansion.
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Crude oil contracts were up 0.3% on Friday, trading at $36.28 a barrel, after falling nearly 4% Thursday. Gold ticked up 0.4% to $1,876 an ounce.
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