Wall Street tumbles with the weight of advertising technology and social media stocks

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, US, July 21, 2022. REUTERS/Brendan McDermid

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  • Twitter drops as quarterly revenue drops
  • Snap Inc shares fall due to slowing growth
  • Telecom services inventories led the sectoral declines
  • AmEx raises revenue forecast on flexible card spending
  • Indices down: Dow 0.83%, S&P 500 1.39%, Nasdaq 2.29%

July 22 (Reuters) – Major U.S. indexes fell on Friday, with shares in social media and ad technology firms falling after weak earnings from Twitter and Snap offset gains made by card issuer American Express after upbeat expectations.

Still, the S&P 500 (.SPX) dao (.DJI) On track to end the week with their biggest gain in nearly a month, with growth stocks doing most of the heavy lifting as markets cheer on quarterly reports from Tesla Inc and Netflix Inc (NFLX.O).

Snap Inc shares fell nearly 40%, after the Snapchat owner reported the weakest quarterly growth in sales as a public company, while Twitter Inc. (TWTR.N) It fell 0.6% after a sudden drop in revenue. Read more

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Online Advertising Giants Meta Platforms Inc (META.O) and Alphabet Inc (GOOGL.O) And fell 7.5% and 6.4%, respectively, affecting the Nasdaq (nineteenth).

Meta and Alphabet are due to announce their earnings next week, along with their fellow venture capitalists, including Apple Inc. (AAPL.O)Microsoft Corporation (MSFT.O) and Amazon.com Inc (AMZN.O).

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Communication Services S&P 500 (.SPLRCL) and information technology (.SPLRCT) They fell 4.8% and 1.9%, respectively, topping the declines among the index’s 11 sectors.

“The gains are coming in less bad than feared, but they are deteriorating from what we are and have become accustomed to over the past several quarters,” said Bob Dole, CIO of CrossMark Global Investments.

“The other cross-current along with earnings is how far will the Fed have to fight this inflation? Have we seen the inflation peak? All these cross-currents will continue to create volatility.”

Market participants continue to anxiously await the Federal Reserve’s meeting and US Q2 GDP data next week. While the US central bank is expected to raise interest rates by 75 basis points to curb runaway inflation, the GDP data is likely to be negative again. Read more

Meanwhile, Friday’s survey showed that US business activity contracted for the first time in nearly two years in July, deepening concerns about a stunted economy due to rising inflation, rising interest rates and eroding consumer confidence. Read more

Verizon Communications Corporation (VZ.N) It lowered its adjusted annual profit forecast as inflation pressured, sending its shares down 8%. American Express company (AXP.N) It was up 2% thanks to strong earnings and higher revenue expectations. Read more

At 2:07 p.m. ET, the Dow Jones Industrial Average (.DJI) It fell 264.87 points, or 0.83%, to 31,772.03 Standard & Poor’s 500 (.SPX) It lost 55.4 points, or 1.39%, to 3,943.55 points, and the Nasdaq Composite (nineteenth) It fell 276.24 points, or 2.29%, to 11,783.37 points.

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Analysts now expect the S&P 500 to grow 6.2% year-over-year for the second quarter, down from estimates of 6.8% at the start of the three-month period, according to Refinitiv data.

Low issues outnumbered advanced issues on the New York Stock Exchange by 1.83 to 1; On the Nasdaq, the ratio was 2.86 to 1 in favor of declining stocks.

The S&P 500 hit a new 52-week high and 31 new low; The Nasdaq made 25 new highs and 58 new lows.

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(covering Echo Wang) in New York. Additional reporting by Shriyashi Sanyal, Aniruda Ghosh and Bansari Mayor Kamdar in Bengaluru; Editing by Somiadb Chakrabarti, Sriraj Kalovila, Shunak Dasgupta and Aurora Ellis

Our criteria: Thomson Reuters Trust Principles.

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