Investing.com - The S&P 500 closed lower Friday as a wave of selling in tech led by Twitter and Intel offset data showing the U.S economy churned out solid growth in the second quarter.
The Dow Jones Industrial Average fell about 0.30%. The S&P 500 fell 0.66%, while the Nasdaq Composite fell about 1.46%.
A second-straight day of selling was seen in tech, dragging the broader market lower. Twitter and Intel stocks tumbled after their quarterly numbers failed to impress investors.
Twitter (NYSE:TWTR) stock fell 20.54% after the social media company's in-line earnings and above-consensus revenue was overshadowed by monthly active users (MAUs) growth that fell short of consensus and weak earnings guidance.
Twitter added 335 million MAUs in the second quarter, but that was short of the 338.5 million MAUs analysts had forecast.
Intel (NASDAQ:INTC) stock fell 8.6%. The chipmaker posted an earnings beat on both the top and bottom lines, but said it was delaying the launch of its next-generation chips, raising fears that rival, Advanced Micro Devices (NASDAQ:AMD), could gain market share.
The slump in both Twitter and Intel more than offset modest gains in Amazon.com (NASDAQ:AMZN) stock after it posted above-consensus earnings on Thursday.
Falling tech stocks dominated market direction, even as investors cheered data showing the U.S. economy remained on solid footing. But analysts warned that the pace of growth may not last.
Gross domestic product increased at a 4.1% annual rate in the April-June period, the Commerce Department said Friday in its first estimate, in line with economists' forecast.
"While we expect the economy to remain strong in the near term, we see growth slowing sometime next year as fiscal stimulus fades and tighter monetary conditions begin to bite," BNP Paribas said in a note to clients Friday.
Sentiment on equities was also soured by a fall in energy stocks as oil prices settled sharply lower Friday and as investors digested disappointing earnings from oil majors who struggled to match the rally in oil prices.
On the New York Mercantile Exchange, crude futures for September delivery gained fell 1.3% cents to settle at $68.69 a barrel.
Exxon Mobil (NYSE:XOM) stock fell about 2.75% after the company's second-quarter earnings fell short of consensus and production tumbled to the lowest level in more than 20 years. Chevron (NYSE:CVX) stock rose 1.63% despite posting earnings that missed expectations.
In other the corporate news, CBS (NYSE:CBS) stock fell about 6% amid reports that allegation of sexual misconduct by CEO Les Moonves will come to light in an upcoming Ronan Farrow expose.
Top S&P 500 Gainers and Losers Today:
National Oilwell Varco (NYSE:NOV), Expedia (NASDAQ:EXPE), Goodyear (NASDAQ:GT) were among the top S&P gainers for the session.
Twitter (NYSE:TWTR), Intel (NASDAQ:INTC) and Edwards Lifesciences (NYSE:EW), were among the worst S&P performers of the session.