Stocks fall as tech takes a beating

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Stocks got whacked Friday, with the Nasdaq Composite shedding nearly 1.5%, after disappointing earnings reports from tech giants Twitter and Intel. The dollar and Treasury yields fell.

Here’s the scoreboard:

Dow Jones industrial average: 25,452.89 −74.18 (-0.29%)

S&P 500: 2,818.19 −19.25 (-0.68%)

Nasdaq Composite index7,737.78 -114.41 (-1.46%) 

  1. The US economy grew at its fastest pace since 2014 in the second quarter. Gross domestic product rose at an annualized pace of 4.1%, according to the Commerce Department, bolstered by strong consumer spending and a boost in exports. 
  2. Trade tensions appear to be weighing on American consumers’ outlook. The University of Michigan’s consumer-sentiment index fell to 97.9 in July from 98.2 the month before. The survey’s chief economist said the dropoff came amid growing concerns about tariffs.
  3. CBS said it’s investigating CEO Leslie Moonves amid reports that he will be accused of sexual misconduct in a forthcoming New Yorker piece. The story is by Ronan Farrow, whose reporting contributed to the arrest of movie mogul Harvey Weinstein. Shares of the company plunged about 6% on Friday. 
  4. Earnings season rolls on. Twitter posted its third quarterly profit, but reported losing about one million average monthly users and said it expected the user base to continue shrinking. Shares of the company dropped nearly 20% following the report. Intel also fell short of expectations and shed about 9%.

And a look at the upcoming economic calendar:

  • Caterpillar reports earnings. 
  • Manufacturing numbers are out in China.

See also:

Goldman Sachs breaks down the damage a trade war could cause in the stock market and 2 ways investors can protect themselves

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Read the full article from it’s original source: http://uk.businessinsider.com/stocks-fall-as-tech-takes-beating-2018-7

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