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Dow Suffers Worst Week Since March as Tech Loses Lustre

Published 10/30/2020, 03:58 PM
Updated 10/30/2020, 04:15 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com – The Dow cut losses into the close Friday, but posted its worst week since March as technology slipped on weaker quarterly earnings, while rising Covid-19 infections prompted investors to abandon their bullish bets on stocks.

The Dow Jones Industrial Average fell 0.59%, or 157 points, and is down 11% from its September highs. The S&P 500 fell 1.15%, while the Nasdaq Composite slumped 2.45%.

Tech, which has been leading the broader market rebound since mid-March, is in the selling spotlight as investors mulled a string of quarterly results from FAANG stocks, excluding Netflix (NASDAQ:NFLX).

Apple (NASDAQ:AAPL) fell 6% after its weaker-than-expected iPhone sales overshadowed third-quarter results that beat on both the top and bottom lines. Amazon.com (NASDAQ:AMZN)'s third-quarter results also beat Wall Street estimates, but its underwhelming guidance sent its shares 5% lower.

Facebook (NASDAQ:FB) slumped 6%% after a fall in user additions, but Wall Street continued to back the stock as the social media giant is expected to benefit from the ongoing "shift of ad spending to digital outlets," Wedbush said in a note.

Google-parent Alphabet (NASDAQ:GOOGL), however, sidestepped the selling, closing 4% higher as investors cheered signs of a rebound in ad-spending as the search engine giant reported third-quarter results that topped analysts' estimates.

Twitter Inc (NYSE:TWTR) plunged 21% after bucking the trend of sharp user growth seen from other social platforms including Snapchat during the quarter, adding just 1 million users since the end of the second quarter.

Energy cut its losses to end positive as oil major Exxon Mobil (NYSE:XOM) pared some intraday weakness following disappointing quarterly results.

The biggest one-day slump on Wall Street since the pandemic began in mid-March comes ahead of the U.S. election on Nov. 3 and as the spread of the virus continues to gather pace.

"[I]t is very unlikely that the economy will so easily continue along on an uninterrupted positive trajectory, particularly if a resurgence of the virus undermines the progress made July to September," Stifel Economics said in a note.

The likely resurgence of the virus in the winter could potentially lead to "further restrictions or regulations will only serve to complicate the outlook for the global recovery, domestic GDP, policy and, of course, next week’s election."

On the stimulus front, House Speaker Nancy Pelosi said she remains at odds with the White House on addressing differences concerning the stimulus package. 

Pelosi said she expects Congress “certainly will have something [done] at the start of the new presidency,” though did "not want to have to wait that long, because people have needs,” according to MSNBC.

Latest comments

"Tech" : fast and pretty phones and ....????
Up or down...doesn’t matter, the job is always the same, switch labor for assets for the family.
"while rising Covid-19 infections prompted investors to abandon their bullish bets on stocks". These are the kind of investors that we all profit from while investing in stocks. The ones that don't understand we're about to get phase 3 vaccine results, that there is a current 6% hospital be occupation regarding Covid, that people being treated for covid are recovering now in record pace and an increasing percentage of people, the market is about to be flooded with covid treatments, pre election volatility is normal, and most of all, countries that even try to lockdown, will have their economies so crippled that they will lose any competitive edge they may have with other countries. And China would own the world economicaly (and will own any country that shuts their economy again). Next week these things will start being reported more often. The real problem/plague is the MSM.
What is wrong with China helping the poor economies when their own governments cannot feed its people except through China’s magnamimous help? Is that not what the IMF and World Bank controlled by the G-8 is doing? Search your soul and not be blinded by Trump’s wild accustions and egoism.
as if China does not have vested interest in so called 'helping' other countries, when it cannot help it's own people..
do you think the market has priced in a victory for Trump. Because there is a possibility that Biden could win.
Landslide Trump victory. Why is not one talking about the H. Biden c.o-r.r-u.p-t.i-o.n scandal?! And Trump's 3 nobel prize nomiations and historic 33.1% GDP record just now? Trump's landslide and the vaccine trial results later this months will more than double everyone's stock. The best year the stock market has ever seen is coming up in 2021. Good times to be invested in stocks.
😂
Keep telling yourself that.
Paul B: try searching One-Hundred-Twenty-Five Amazing Accomplishments of President Donald J. Trump.  It is well written and current.  It shows Trump is a champion for freedom and small government.  The Democrat Party is not what it used to be.  IMO today's Democrats are rather un-American. Dem-socialist tenancies are quite anti-freedom. Can you tell us how the Democrats personify the American spirit?  Your party is holding campaign rallies hiding in their cars in fear of a virus the incumbent has recovered from. Your party shies away from social interaction afraid and wearing masks. What happened to American courage? American freedom has been paid for with blood spilled from long ago. Taking on risk and having courage is what made America great. While a large group is rallying in a precautionary manner, another group is rallying as normal, having faith they will perceiver. I encourage you to take courage, support freedom, and embrace the spirit and heritage that is America.
Election panic sellers are all gone.. Green on Monday
Good response
Plus end of month rebalancing compounded by hedge funds putting selling pressure to pick up stocks at better prices.
Institutional selling.
Will the markets go back up after the elections?
Not if Trump wins. Covid will shut America down
Not if Trump wins
Depends who wins and controls the virus
markets moves in a way that a biden win in the election is reallypossible,and i hope so too.
*really possible
need more of that fake feed money so they can prop up this ponzi scheme and buy up everything in sight
Pelosi is guilty of failure to reach an agreement with the government
Have you ever heard of a man named “Mitch” before?
She should be locked up. Seriously. At 80, probably suffering some form of dimentia. Not fit to serve the people. She will not be missed.
PPelosi blamed for failure to reach agreement with government
Bunch of bedwetters who cant see more than 1 quarter at a time. Fools.
wait next week a big red , JP morgan , goldman sell all with fake earnigs to microsfot and amazon ,3 november big red
Stock market sinking after an election would be an historical first. Unless the candidate is proposing to raise taxes as soon as he steps foot into office. We all know who that would be.
It may be that it will take time, who knows how long, before we know the winner.  Could be a long time, if the outcome is contested and goes to the Supreme Court...   I'm not saying I think that will happen, and we could get an outcome Tuesday, but some folks are saying these things might happen. These possibilities are out on the table - know what I mean?  Who knows...?  We'll just have to see what happens. Time will tell.  Might take a few days due to the votes in the battleground states still needing to be counted...  Could be a landslide either way too.  I don't trust the polls...  Anything can happen.
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