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by April Joyner
NEW YORK (Reuters) – The New York Stock Exchange ended down Friday, penalized by technology, after the publication of the disappointing results of Intel and Twitter.
Dow Jones index lost 76.01 points, or 0.30%, to 25,451.06.
The broader Standard & Poor's 500 fell by 18.62 points, or 0.66% to 2,818.82. The Nasdaq Composite, with a strong technology component, lost 114.77 points, or 1.46% to 7.737.42, its largest percentage decline on a session for a month.
Over the week, the Dow won 1.57% and the S & P-500 0.61%, while the Nasdaq lost 1.06%.
Intel, largest Dow drop, dropped 8.59%, despite quarterly better than expected . The world's second-largest semiconductor company has been penalized for its lower-than-consensus data center processor revenue.
Twitter dropped 20.54%. The social network has reported fewer active users than badysts expect and warned that this much-watched figure could continue to fall as fictitious account deletions continue.
TECHS LOSE NEARLY 2%
The S & P-500 technology stocks posted the largest sectoral decline in the S & P-500, down 1.99%.
Alphabet, the parent company of Google, and Microsoft, which published these last days results above expectations, lost 2.54% and 1.77%. respectively. Apple, which will announce its own Tuesday, dropped 1.66%.
The pressure on technology stocks continues after the warning issued by Facebook on its turnover. The social network, which lost more than 18% Thursday, ended down 0.78%.
"These are very large values, very prominent," notes Chad Morganlander, portfolio manager at Washington Crossing Advisors. "A slowdown in performance (of one of them) puts enormous pressure on the whole (…) It forces the market to take a break."
Amazon, however, won 0.5%, after gaining up to 4% in session and reached a peak at $ 1,880. The online retail giant has announced a record quarterly profit and well above expectations.
Seven of the S & P-500's 11 buckets ended in the red, with the health sector posting the second-worst decline ( -0.72%), while industrials have ended up in equilibrium
CHEVRON ANNOUNCES SHARE BUYBACK PROGRAM
AbbVie lost 3.60%, investors worried about future sales of its star drug Humira
Merck dropped 0.81%, despite a quarterly profit above expectations. The laboratory disappointed investors saying it would probably keep its animal health division unlike its competitor Eli Lilly (+ 1.49%).
At values still, Exxon Mobil and Chevron, both of which published worse than expected quarterly, did not provoke the same reaction from investors. The first lost 2.75%, the Dow's second largest decline, while the second, gained 1.63%, supported by the announcement of a long-awaited share buyback program by Wall Street. Chevron achieved the second best performance of the Dow.
On the other hand, Goodyear took 9.45%, making the third largest increase in the S & P-500. The group has shown optimism for its tire sales, especially in Europe, and downplayed the impact of rising raw material costs.
Some 6.81 billion shares have changed hands in US markets, compare with an average of 6.04 billion during the last 20 sessions
GROWTH OF US GDP IN Q2 COMPLIANT TO EXPECTATIONS
Focused on results, the equity markets reacted little to the first estimate of growth in US gross domestic product (GDP) in the second quarter, standing at 4.1% annualized, in line with expectations. This is its best performance since the third quarter of 2014.
The PCE index of consumer spending excluding food and energy, an indicator favored by the Federal Reserve to badess inflation, has, on the other hand, slowed with growth in 2.0% vs. 2.2% in the first quarter.
These figures weighed on the dollar, which erased its gains against a basket of reference currencies, and lost 0.1%. The euro came back around 1.1641.
10-year Treasuries returned to 2.962%, after peaking at 2.988% in the morning.
On the oil front prices were down, but that did not stop Brent from posting its first weekly rise in four weeks.
(With Amy Caren Daniel in Bangalore, Catherine Mallebay-Vacator for the French service.)
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