[ad_1]
U.S. stocks fell again Friday, continuing a bout of weakness and volatility that has plagued markets throughout the month of October, and threatened to push the Dow and S&P 500 into negative territory for the year.
How are major benchmarks faring?
The Dow Jones Industrial Average
DJIA, -1.65%
was down 275 points, or 1%, to 24,721, while the S&P 500
SPX, -2.33%
fell 42 points, or 1.6%, to 2663, and the Nasdaq Composite Index
NQZ8, -1.30%
slid 152 points, or 2%, to 7,169.
On Thursday, the Dow rallied 399.95 points, or 1%, to 24,983, while the S&P 500 advanced 49.46 points, or 1.2%, to end at 2,705.57. The Nasdaq gained 209.93 points, finishing at 7,318.34, a rise of 2.95%, notching its best single day performance since March 26.
That came after the Dow plunged over 600 points on Wednesday, while the Nasdaq gave up over 300 points, marking its worst day since Aug. 18, 2011 and putting the index into a widely used definition of a market correction.
For the week as of Thursday, the Dow was off 1.8%, the S&P 500 2.2% and the Nasdaq 1.8%. For the month of October so far, the S&P has lost 7.15%, the Dow is down 5.57%, and the Nasdaq has shed 9.05%.
Read: Here’s a reminder that stock-market corrections don’t always become bear markets
What’s driving markets?
Investors appeared wary ahead of the weekend amid persistent worries about slowing global growth, rising interest rates and concerns that companies have seen peak earnings growth.
Not helping the mood was disappointing results from two of the biggest tech-related companies. Amazon
AMZN, -8.51%
posted a record profit late Thursday, but sales disappointed, and more important, its forecast for fourth-quarter sales—the all-important holiday shopping period—was below badyst expectations. Shares slid over 7% in late trading.
Read: Record profit can’t save Amazon from stock downturn
Trade worries were also simmering after U.S. officials reportedly said trade talks with China won’t resume until Beijing comes up with solid proposals over forced technology transfers and other economic issues.
Which data are in focus?
The Commerce Department reported that the U.S. economy grew 3.5% in the third quarter, beating forecaster estimates of 3.4%. Second quarter growth was unrevised at 4.2%.
Consumer sentiment figures are due to be released by the University of Michigan at 10 a.m. Eastern.
What are badysts saying?
“Well, it’s getting sloppy out there, with the Nasdaq getting smoked sparked by Amazon and Google prints,” warned Dave Lutz, head of ETFs at JonesTrading, in a note to clients. He pointed to weak performance in both the Asian and European markets as reason to expect a selloff in the U.S. heading into the weekend.
Ed Yardeni, president and chief investment strategist at Yardeni Research, argued in a note to clients Friday morning that despite the continued weakness in markets in October, the current bull market will continue into next year. “The next relief rally should be triggered by continued signs of economic growth combined with subdued inflation,” he wrote.
Which stocks are in focus?
Amazon.com, Inc.
AMZN, -8.51%
shares are down 7.4%, after the retailer lowered its guidance for holiday sales figures.
Intel Corp.
INTC, +1.72%
shares are up 2.9%, after the company’s quarterly results and outlook beat badyst estimates.
Share of Expedia Group Inc.
EXPE, +3.24%
are up 3.5% in morning trading, following the release of quarterly results Thursday evening that surpbaded Wall Street expectations.
Charter Communications Inc.
CHTR, -9.11%
stock is down 8.4% in early trading Thursday, following the release of revenue numbers the fell short of badyst estimates.
How are other markets trading?
Asian stocks fell Friday, led by a 1% drop for the Hong Kong Hang Seng Index
HSI, -1.11%
and a 0.8% fall for the Nikkei 225 index
NIK, -0.40%
The Japanese index was poised for a weekly drop of 6%.
European markets were struggling as well.
USDJPY, -0.66%
and gold prices
GCZ8, +0.39%
were higher, indicative of investors seeking out perceived safer havens. Oil prices
CLZ8, -0.98%
were lower, taking their cue from stocks.
Providing critical information for the U.S. trading day. Subscribe to MarketWatch’s free Need to Know newsletter. Sign up here.
Source link
