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Stocks Erase Gains to Turn Negative After Report Apple to Slow Hiring

Published 07/18/2022, 01:47 PM
Updated 07/18/2022, 01:55 PM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks turned negative on Monday after an earlier 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 2:06 PM ET, the Dow Jones Industrial Average was down 28 points, or about 0.1%, while the S&P 500 was down 0.2% and the NASDAQ Composite fell 0.1%.

Goldman Sachs Group Inc (NYSE:GS) beat expectations, its stock was up 1% after bond trading helped overcome weakness in M&A advisory. Bank of America Corp (NYSE:BAC) rose 0.2% after its report also showed a slump in investment banking activity. Both had been up higher in earlier trading.

Apple shares (NASDAQ:AAPL) ticked down about 1% after reports 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 $98.44 a barrel, while Brent Oil Futures crude also rose 4%, to $105.23. Gold Futures rose 0.6%, to $1,713 an ounce.

Latest comments

Wow these lossesLate make no sense at all ! I mean any nit wit would know this, just talking about today, scary !
Mark your calendars, the laughingstock of the investing world gave up a "rally," but not until the criminals on Wall Street hand placed it above 31K at the close.  Whether up or down, the US Ponzi Scheme is a criminally manipulated joke.
Lets Go Brandon!!
Lol blaming Apple for the market turn because they say theyll be slowing some hiring is LAME
Its funny. 2008 recession came out of nowhere and everyone was in shock. Virus "recession" if you can call it that, was also a shocking event. Now, however, it feels like everyone can see a recession coming a mile away but I fear that it will not be a sudden event. Instead it will be a slooooow grind with high unemployment and high inflation. Hopefully I am wrong :)
I hope u are wrong too.
And what ???? Bcs of Apple depend all stock market ... this is bull s...t
Yep!...absolute BS.
All all.  7%.
* Not all.
Yeah right...those controlling the algorithms will use any excuse to flip the switch.
I know tech companies second quarter earnings will miss expectations
when everyone knows it, the market will go the other way around.
when everyone knows it, the market will go the other way around.
Apple slowing hiring in case of a slowdown should not be surprising. It would be negligent not to. Same reason people sold stocks hysterically the last few months. It shouldn't cause a sell off it should be expected in this climate. Doesn't mean a recession is going to happen it just means they want to be prepared like everyone else.
How stupid are these Wall Street people? What else did they think? Bullish?
wrong!!!! the wall's street are dumping, while, the poor retailer who knows nothing are buying, thinking we already hit the bottom....
Not as stupid as all the panic sellers
timeframe i dont know where market will be next week or next month but is am almost positive it will be up in 3 to 5 years. People need to get some perspective
And the floor goes in right as the US Ponzi Scheme goes negative, as the predictable 2PM breaker fires on schedule.  How convenient.  Another round of "late trade" magic on way in the laughingstock of the financial world.  Can't have any profit taking after a miraculous 600 point "reversal" on Thursday, and a miraculous, criminally manufactured, 650 point tightrope walk on Friday.  What an absolute joke.
"late trade" magic?  You're bad at this.
Take your losses like a man you have had 6 months plus of the market falling. Do you expect it to go to zero stupid?
Heatwaves, rate hikes, and bears....oh my! Can we get a hurricane, please?! It's 108 degrees in Dallas and wind turbines in Texas are operating at just 8 percent of their capacity because of low wind speeds.
That's why we have solar, Albert.
@Jim Jimmy  newsflash! huge amount of spent solar panels now coming to end of life and the hypocritical greenies are filling the earth with them. 20% of solar panels are unrecyclable toxic garbage waste. Worse, the 80% that is recyclable is painstaking and very expensive (unprofitable) to extract...so, instead of being recycled, spent solar panels are being thrown away and buried  whole.... humongous piles of dumped solar panels potentially poisoning the earth's ground water. And, it's only getting worse, as more and more toxic solar panels are now reaching end of life.
I want deep red ink. I'm looking to add long positions. Don't fear the bear.
You will get what you wish for... Don't worry
Not today, apparently. That's ok, I never force $ into the market. Patience=discounts.
Big talker.
Was anyone really expecting good earnings numbers? It was simply an early morning FED pump designed to neutralize any stock losses...
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