Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Nasdaq drops as FAANG growth worries persist

Stock Markets Jul 30, 2018 12:07PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Traders work on the floor of the New York Stock Exchange

By Amy Caren Daniel

(Reuters) - The Nasdaq Composite fell more than 1 percent on Monday for the third straight session, as disappointing forecasts from a clutch of technology and internet companies fueled worries about the continued growth of the high-flying tech sector.

Gains by energy companies, as oil prices rose, and bank stocks ahead of the Federal Reserve meeting helped the benchmark S&P 500 cut its losses.

The technology index (SPLRCT) tumbled 1.65 percent, falling more than 1.5 percent for the third straight day as underwhelming results from the likes of Facebook (O:FB) and Netflix (O:NFLX) spooked investors about the prospects of a sector that has led the equity market to record highs.

The so-called FAANG group fell on Monday. Facebook dropped 4.3 percent and Netflix (O:NFLX) slid 4.6 percent. Amazon (O:AMZN) declined 1.2 percent and Alphabet (O:GOOGL) dropped 1.5 percent despite both reporting healthy results.

Apple (O:AAPL), which is due to report earnings on Tuesday after the bell, fell 0.6 percent.

"Investors are still trying to digest results from FAANG stocks last week, and trying to figure out if it's just another bump in the road or if something more meaningful is in play," said Cliff Hodge, director of investments for Cornerstone Wealth in Charlotte, North Carolina.

"People are worried these stocks won't hold up or will not continue to grow. They are looking at the big picture and wondering if we're getting later and later in the cycle and trying to decide if it's time to be more defensive."

Still, six of the 11 major S&P sectors were higher. The biggest boost to the market was from the energy sector's (SPNY) 0.63 percent gain as oil prices rose with investors remaining cautious over supply outlook. [O/R]

At 11:29 a.m. EDT the Dow Jones Industrial Average (DJI) was down 42.84 points, or 0.17 percent, at 25,408.22, the S&P 500 (SPX) was down 9.45 points, or 0.34 percent, at 2,809.37 and the Nasdaq (IXIC) was down 82.14 points, or 1.06 percent, at 7,655.28.

Still, declining issues outnumbered advancers for a 1.06-to-1 ratio on the Nasdaq. Advancing issues outnumbered decliners for a 1.34-to-1 ratio on the NYSE.

Caterpillar's shares (N:CAT) were up 0.5 percent, easing from higher gains before the bell when the heavy equipment maker reported a second-quarter profit that beat estimates and raised its full-year profit outlook.

AT&T (N:T) rose 2.9 percent and led the telecoms sector (SPLRCL) 2.36 percent higher after Bank of America (NYSE:BAC) upgraded the wireless carrier's stock, according to CNBC.

Financial stocks (SPSY) gained 0.29 percent ahead of the Federal Reserve's meeting on Tuesday and Wednesday.

The Fed is expected to keep rates unchanged and reaffirm outlook for further rate hikes. The market has almost fully priced in a September hike and is leaning towards a further move before the end of the year.

American Express (N:AXP) fell 2.6 percent after the Wall Street Journal reported the company raised currency conversion rates for its business clients without notifying them.

Tyson Foods (N:TSN) dropped 6.6 percent after cutting its full-year profit forecast, saying uncertain trade policies and higher tariffs hurt domestic and export prices, specifically for chicken and pork.

The warning also weighed on the shares of Hormel Foods (N:HRL), Sanderson Farms (O:SAFM) and Pilgrim's Pride (O:PPC), which fell between 0.3 and 2.3 percent.

The S&P index recorded 13 new 52-week highs and two new lows, while the Nasdaq recorded 22 new highs and 64 new lows.

Nasdaq drops as FAANG growth worries persist

Related Articles

S&P, Fitch lower Ukraine's foreign currency rating
S&P, Fitch lower Ukraine's foreign currency rating By Reuters - Aug 12, 2022

(Reuters) - Global rating agencies S&P and Fitch on Friday lowered Ukraine's foreign currency ratings, saying they consider the country's debt restructuring as distressed. Earlier...

Brazil's Cosan posts $25 million Q2 net loss
Brazil's Cosan posts $25 million Q2 net loss By Reuters - Aug 12, 2022

SAO PAULO (Reuters) - Brazilian holding company Cosan (NYSE:CZZ) SA on Friday reported a net loss in second quarter, as a higher interest rate raised its cost of debt. Cosan,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Ilya Atomiq
Ilya Atomiq Jul 30, 2018 12:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email