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Dow Shrugs Off Bullish Earnings as Tech Falters

Published 07/16/2020, 12:56 PM
Updated 07/16/2020, 03:03 PM
© Reuters.

By Yasin Ebrahim

Investing.com – The Dow steepened its decline on Thursday as a slide in technology stocks overshadowed mostly bullish earnings at a time when rising U.S. Covid-19 cases shows no sign of letting up.

The S&P 500 lost 0.74%, while the Nasdaq Composite fell 1.05% and the Dow Jones Industrial Average slipped 1%.

Quarterly results from banks continued to pour in, with Morgan Stanley and Bank of America posting better-than-expected earnings.

Morgan Stanley (NYSE:MS) rose 1.42% after reporting earnings and revenue that beat consensus estimates, led by strong performance in its trading division.

Bank of America (NYSE:BAC) fell 3.58% despite delivering a beat on the top and bottom lines.  

Both banks flagged an increase in loan loss provisions to protect against a wave of potential client defaults.

Elsewhere on the earnings front, Johnson & Johnson (NYSE:JNJ) reported results that topped estimates as growth in its pharmaceutical business softened the blow from coronavirus-led disruptions. Its shares traded flat.

The latest round of earnings provided investors with insight into the impact of the virus, which continues to spread in the U.S., with cases rising to 3.53 million.

In tech, meanwhile, Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and Amazon.com (NASDAQ:AMZN), the so-called Fab 5, making up about 40% of the Nasdaq Index, dragged the broader sector down.

Energy cut its gains on the day, as oil prices fell after OPEC and its allies agreed to rein in production cuts.

On the economic front, retail sales for June topped estimates, while higher-than-forecast U.S. weekly jobless claims stoked worries over whether the recent strength in the labor market was losing steam.

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The recent data does "not bode well for improvement [in jobless claims] in July anywhere near what we saw in May and June," Jefferies (NYSE:JEF) said.

Elsewhere, Twitter (NYSE:TWTR) fell 1.8% after accounts belonging to prominent handles were hacked on Wednesday.

Latest comments

Obviously the writer is not a trader, or an investor. This is rotation from tech to value...geezz
I am even long on Investing.com.  They have not locked me out yet for ranting. Usually when I speak they short me but we are getting a bid into the close.
"When you don't know what you have to do in your job and start to create garbage news that doesn't fit with the current situation". Same picture and almost the same text.
I just spoke with the Space Force and we have a deal with Aliens on new tech.  Better cover that tech short.
Ok we need someone to write civil war calls.  I am long a US civil war.  We have threats of war, virus's developing daily, the mask is never going away, anarchy in the streets, reparations, and the market inches higher.  Aliens could land on White House and that would be bullish well because of new tech.  Nasdaq 20K I am long Alien calls too.  I am just bullish. Remember gold is inverse of dollar so higher gold screams the lower your buying power of the dollar. Long anarchy calls too.
haha "bullish earnings" yeah, only compared to the low low low expactations. Many of those numbers are down 30-50% from the year before. Very "bullish" shrugging it off
We know the market is long until end of month so play all the games you want. We have Covid, threats of war, anarchy, and its very bullish.  So why would I sell before the PPE money runs out?  Everything is bullish and that should be the red flag. When no bad news moves the needle that's a red flag.  Nothing scares the market not even President Biden But the market will sink like a lead weight if that happens.  The Big Short may be setting up.
Problem is.... it will hit so hard, you will be trapped in.  Agenda 21: remove the middle class and possibly remove equity investments.  When the world shuts down, these are big clues.  ...Something bad, real bad like Agenda 21 is ahead of us.
algo claro es que el mercado caerá muy poco y estará volátil por mas mortalidad de gente y contagio que hallen... esto estará así mientras trump vuelve a quedar de presidente después de ello comienza la realidad
death rate at all time lows, "new cases" at all time highs... you have to be a true sheep to not see you have been lied to
over 30 "testing" facilities in FL found to be reporting 100% positive cases
Yep...  It's called Omissions & Errors of Material Facts, constitutes a Fraud.  - Remember, we had terrortists lurking around every corner.   - Until, we thought everyone was a ******  - Same game, now played with a common virus we all have.  .. We have 70 trillion cells. Double it, that's how much bacteria is in our bodies.  Double that again, that's how many viruses are in our body.  To survive as a species for 10 thousand years, we have whats called an Immune System protecting us from bacteria and viruses.  As we age, do drugs, even drug store drugs, we compromise the immune system.  Then, it's possible to get Pneumonia. .....Why are we not attending to 1 thousand, 600 Cancer patients who die each and every day ?? ..... Maybe wear a mask around smokers..  How about deploying the military to prevent candy and sugar sales that feeds the deadly cancer virus??  Too reasonable?
  I hear you. For the purposes of this argument, the Executive has already lined the pockets of these drug makers for the next two decades, and if that's not enough, they are allowed to issue almost daily faux updates that do nothing toward target accomplishment but instead fetch 2-3% premium daily on the stock. How nice. This is the freest free lunch ever.
HEADLINE: "Covid-19 cases shows no sign of letting up."  Correct!  It's a cold virus.  It's been around for centuries and will continue.  Difference!  For the past 10 thousand years we did not quarantine the healthy using the military.  Welcome to Agenda 21!  Why not attend to the 1 thousand 600 people who die daily from CANCER!  Only treatment, fry them with radiation.  Never worked, never will.
omg wow... smh
Quarterly results from banks continued to pour in, with Morgan Stanley and Bank of America posting better-than-expected earnings....  Yeah! They expected 0.
For the headlines to make sense, you'll need to spend a couple years in journalism school.
Wow good news shrugged off? I thought only bad news was shrugged off
One day down, how long can FED keep this up...
Step by Step market will go up !!
Crystal ball? If so, my crystal ball shows the market tanking again and likely not recovering for years if Biden is elected.
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