Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Wall Street falls ahead of big tech earnings; Nasdaq sheds 180 pts

Published 07/27/2021, 06:37 AM
Updated 07/27/2021, 08:22 AM
© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly/File Photo

© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly/File Photo

By Ambar Warrick

(Reuters) -U.S. stock indexes fell ahead of earnings reports from the most valuable companies on Wall Street and in the run-up to the two-day Federal Reserve meeting.

The tech-heavy Nasdaq fell 180 points, or 1.2% on Tuesday, to close at 14,660. The Dow Jones Industrial Average closed down 85 points, or 0.2%. The S&P 500 fell 0.5%.

Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT), are set to report earnings after the market closes, while Amazon (NASDAQ:AMZN) will report results on Thursday.

"The markets may be in a sideways, quiet mode until we get some of those results... generally it's more reactive than it is proactive," said Randy Frederick, managing director of Trading and Derivatives at Schwab Center for Financial Research.

"The expectations for earnings for growth were high. This is being compared to 2020, when the economy was shut down, and as a result, there's a very low bar (for comparison)."

Investors remained on edge, awaiting more signals from the central bank on when it intends to begin reining in its massive stimulus program. The two-day Fed meeting will begin later in the day.

Frederick said the Fed was likely to stand pat on policy this week, but could hint at its plans for tightening during the Jackson Hole Symposium in August.

Wall Street indexes had inched up to record closing highs on Monday, carrying over momentum from a strong batch of earnings last week.

Of the S&P 500 constituents, 124 companies have reported earnings so far and 88.7% of them have beaten estimates, according to Refinitiv data.

Electric-car maker Tesla (NASDAQ:TSLA) Inc rose 1.4% in premarket trade after it posted a better-than-expected second-quarter profit on higher sales of its less-expensive vehicles.

© Reuters. FILE PHOTO: A street sign for Wall Street is seen outside of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 28, 2021. REUTERS/Andrew Kelly/File Photo

U.S.-listed Chinese stocks extended their declines as fears over more regulations in the mainland persisted. Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) lost about 3.2% and 4.5%, respectively.

General Electric (NYSE:GE) rose more than 4% after it lifted its annual free cash flow forecast after reporting a surprise positive cash flow in the second quarter as industrial orders and revenue returned to growth.

 

Latest comments

Another little dip, another buying opportunity. New money eagerly plumbs every leak in the market.
The same company owns everything so they know everything in advance....and they might have record earnings yet don't pay taxes and outsource jobs to China
Anyone account management?
What are you looking for?
Let it all crash
Just overbought and, as usual, dipping to trigger stops to clear the next move. Only that one day will be different, meanwhile wash, rinse and repeat.
Business as usual. A 50% retracement of the mid July swing. Market needed to bring the price down ahead of the big tech earnings to give them enough room. Any narrative (virus and etc.) is used to justify that sell.  Market is very technical and nothing happens at random.
Dip? Maybe its toes in the water
tbh i dont see any dips. it always miraculously goes back up at 4
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.