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Stock Market Today: Dow Ends Lower After Bad News from Tech Giant

Published 07/18/2022, 04:04 PM
Updated 07/18/2022, 04:08 PM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks ended in the red on Monday, killing a rally after a report Apple would slow hiring.

The markets had been higher earlier as big banks kicked off another busy week of earnings and expectations eased about a big interest rate increase by the Fed.

At 4:05 PM ET, the Dow Jones Industrial Average was down 216, or about 0.7%, while the S&P 500 was down 0.8% and the NASDAQ Composite fell 0.8%.

Goldman Sachs Group Inc (NYSE:GS) beat expectations, its stock was up 2.5% after bond trading helped overcome weakness in M&A advisory. Bank of America Corp (NYSE:BAC) ended flat after its report also showed a slump in investment banking activity. Both had been up higher in earlier trading.

Apple shares (NASDAQ:AAPL) fell 2% after a report it would slow hiring and spending, becoming the latest tech giant to make such a move as fears of an economic downturn hit the sector.

Investors are betting that the Federal Reserve won’t be as aggressive as some were betting last week after the consumer price index for June showed a jump of 9.1% for the 12 months ending last month. 

High inflation stoked fears the Fed could jack up rates an uncharacteristically aggressive 1%, but now investors are expecting a 0.75 percentage point increase to match the move in June. That would still be one of the biggest moves since the 1990s.

Officials are trying to tame inflation, helped in recent weeks by a drop in gasoline prices, but still not enough for comfort. Food prices remain elevated as well, and a prolonged heat wave in much of the country means air conditioning bills will eat into household budgets this month.

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This week will also see earnings from Tesla Inc (NASDAQ:TSLA), Twitter Inc (NYSE:TWTR) and Netflix Inc (NASDAQ:NFLX).

Oil rose. Crude Oil WTI Futures jumped 4%, to $98.90 a barrel, while Brent Oil Futures crude also rose 4%, to $105.66. Gold Futures rose 0.1%, to $1,705 an ounce.

Latest comments

Shrugging Off Bad News, headlined when it’s going up and held still at the end of trading, LMAO
hi it's very important ☺️
yes
numbers good. market rallies. numbers bad. market rallies.
Teslas earnings coming in a few days. With their additional slow down it will be interesting to see where the numbers end up and how that way you affect the market.
Dow ends lower because of algorithmic trading, plain and simple.
Remember folks, this is the laughingstock of the investing world.  The only "market" that can repeatedly "rally" on the same news for days, yet poor data results in a single session loss that's magically reversed the day after it occurs on the same news.  These narratives are used after-the-fact to justify the criminal manipulation, nothing more.
the "market" acts and reacts as is moving by the average sentiment of the people. people like you.
if you believe that son for gods God's sake stay out of the market
So Apple slows hiring and market tanks? How does th whole market drop off one company and one statement. Surley people can see how corrupt our economy is.
If Apple, the company with the biggest capitalization in the market starts slowing down activities. That very well speaks for other companies with lot less capitalization and cash flow on how the rate hikes are affecting the companies
If Apple, the company with the biggest capitalization in the market starts slowing down activities. That very well speaks for other companies with lot less capitalization and cash flow on how the rate hikes are affecting the companies
If Apple, the company with the biggest capitalization in the market starts slowing down activities. That very well speaks for other companies with lot less capitalization and cash flow on how the rate hikes are affecting the companies.
Good thing there was all the "optimism" at the start of the day. Thanks FED
Crash is coming. Reports are showing slow profits and inflation is high... Stocks will be destroyed in the coming months!!!
The nasdaq has fallen 6000 points (at last bounce point) and MOST of these companies haven't even had their earnings fall, YET. But these higher interest rates guarantee that they WILL. this market will look like BTC before this is over and for the same reason. MONEY will become worth something, and speculation using free money will STOP. personally im just buying ONLY monthly options, calls at near previous bottom, and puts up here and I have been making money on BOTH ends for weeks. I will continue until we finally break bottom when earnings finally show a recession. I also have puts with 6 months left on them and calls with a year on them I sold 4000 points higher that I will never have to buy back. Its NOT as though this didnt HAVE to happen. There is NO SUCH THING as free money, and the fact that we actually  had people PAYING people to take their money in the bond market didnt change the FACT that money is NEVER free. I just had to wait.
  lol, yes I expected that reaction. But even after 30 plus years I cant help trying to warn people. Did it 3 months before top but that didnt help anybody so im hardly surprised. Good luck to you!
 BTW, BOTH BTC and the NASDAW turn at EXACTLY their monthly RSI 40 lines. and both have held them SO FAR. you might want to keep that one thing in mind in the future. Its worked like I was reading the big boys mail, for the last 20 plus years. NORMAL hard pullback in stocks and markets that are just overbought but still bulls will all stop at WEEKLY 40 lines. it applies to stocks, commodities and when ANYTHING falls below its monthly RSI 40 its a SUPER BEAR and I NEVER buy it again until it comes back ABOVE that 40 because RSI measures VELOCITY and like a falling jet, VELOCITY may max out, but that DOESNT mean it won't fall another 20,000 feet. -or dollars.
@Robert Smith Good analysis! What is the meaning of RSI 40 line?
APPL Slow Hiring process not start Firing. Come on Scardy Cats of the World. But thanks for the volatility and the cash today
The recession caused the unwinding of the very same thing that GOT US so incredibly high (interest rates going back to norms) IS REAL. And its got high oil prices pushing it. That will just make it exponentially worse. but there is no prayer that these stocks will reach the same valuation they had at top with 0 percent interest rates when NORMAL interest rates are historically 8 percent. Take a look at an historical interest rate chart and you will see that beginning around 1930 to 2022 the AVERAGE interest rate was well OVER 8 percent. With Highs back in the early 1980's of a whopping 21 percent. if we get even 7% the profits AND sales for all these companies will crash like rocks.
imo the country that can get the most people into EV's the fastest will have their whole population paying the equivalent of about $1 a gallon for gas. that ALONE could get an economy going strong while the rest of the world stays locked in recession. China is the ONLY country that could do that because they can TELL their people what they will buy and drive. Just a thought.
AAPL story looks the same pattern JPM did last week. Other big tech giants could show extremely positive stories but refrain from doing so to persuade Fed to slow down hiking.
slow down is too much so Fed should and must slow down rate hiking. maybe 25 or 50 bps this month would be appropriate.
Funny, On an up day a company spokesman throws out something to dump market. Common sense would say you would throw that out on a day the market is down. Didnt another big Co. do that just over a week ago too.
They are trying to play you Robert. They bought heavily at the VERT LAST support the nasdaq had at its MONTHLY RSI 40 line line a few weeks back. Markets often bottom there, but if they DONT then you get what happened in 2000 crash from 4700 to 400 area. it was an 86% loss and this market is every bit as overbought and if it happened again the nasdaq would hit 2200. So they are just going up and down here and it could last 6 months. It WILL last until they get some news good or bad. But NOT up.
My milkshake brings all the girls to the yard, it´s better than yours, I can teach u but I have to charge
Where are they slowing the hiring?  CHINA?  Is the market reacting to the hiring or the anticipation of decreased sales?
Yes
interest rates is all market cares. competitive interest in bonds will move money from stocks to bonds. that's all. nothing slowing or no recession ..
As we all know markets tend to travel up or down together though at much different paces. Ive been thinking for a while that the fundamentals might see Chinese markets actually go UP while the nasdaq continues down this time. It won't happen until china rids itself of covid though. but they are getting OIL much cheaper than us, and the government supports its people and businesses in China and they can grow completely on their own they have more than enough people to see to and more than enough to build or make them anything they want INCLUDING EV's. which would give them a HUGE jump on the world if they were still in recession.jmo
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