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Wall Street Stutters as Tech's Stumble Keeps Bulls Sidelined

Stock MarketsJul 24, 2020 02:44PM ET
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© Reuters.

By Yasin Ebrahim

Investing.com – Wall Street fell Friday, as rising U.S. and China tensions and a stumble in tech and health care weighed on sentiment.

The S&P 500 lost 0.49%, while the Nasdaq Composite fell 0.69% and the Dow Jones Industrial Average slumped 0.52%.

Mega-cap tech - with exception of Amazon.com Inc (NASDAQ:AMZN) – struggled to find their footing as Apple (NASDAQ:AAPL), Alphabet (NASDAQ:GOOGL),  Facebook Inc (NASDAQ:FB) and Microsoft (NASDAQ:MSFT), making up about 20% of the S&P 500 index, traded below the flatline.

Weakness in chip stocks, led by Intel Corporation (NASDAQ:INTC), meanwhile, exacerbated the decline in tech with the Philadelphia Semiconductor Index down 0.71%. Intel rival Advanced Micro Devices Inc (NASDAQ:AMD), however, surged 16% as the chipmaker is set to benefit from Intel's production woes.

Intel shares slumped 16% as its better-than-expected results for the second quarter, were overshadowed by the delays to the roll out of its next-generation chips.  

Health care was also among the biggest declines as investors shunned Covid vaccine-related drug makers that have been bid up recently.

Moderna (NASDAQ:MRNA), Pfizer (NYSE:PFE) and Biontech Se (NASDAQ:BNTX), Novavax Inc (NASDAQ:NVAX) and Gilead Sciences (NASDAQ:GILD) were down more than 2%.

Moderna recently lost in a bid to scrap a U.S. patent owned by Arbutus Biopharma (NASDAQ:ABUS) that threatens its efforts to develop mRNA-based vaccines.

In financials, Goldman Sachs was in the spotlight after the Wall Street bank reached a $3.9 billion settlement with Malaysia concerning a multibillion-dollar sovereign wealth fund 1Malaysia Development Bhd (1MDB) scandal.

Shares of Goldman Sachs (NYSE:GS) were roughly unchanged on the day, and the bank also benefited from an upgrade from JPMorgan (NYSE:JPM) to buy from neutral.

The broader market kicked off the session on the back foot as investor sentiment was soured by rising U.S. and China tensions.

China ordered the closure of a U.S. consulate in Chengdu, hitting back against the United States' move earlier this week to close a Chinese consulate in Houston, 

On the earnings front, investors had to contend with mixed results that highlighted the impact of the pandemic.

Honeywell (NYSE:HON) fell more than 2.5% as a warning of sales headwinds offset better-than-expected earnings and revenue in the second quarter.

Boston Beer (NYSE:SAM), meanwhile, produced blowout second-quarter results as earnings were more than double the consensus estimates, sending its shares 24% higher.

On the economic front, home buying activity remained as new homes in June markedly beat economist estimates.

New home sales rose by 13.8% in June to an annualized run-rate of 776,000 units, the highest level since 2007.

"The tightness in the housing market suggests significant upside for home building activity, provided demand can be sustained at current levels. We believe it can, with upside," Jefferies (NYSE:JEF) said.

Wall Street Stutters as Tech's Stumble Keeps Bulls Sidelined
 

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Comments (12)
Justin Justice
Justin Justice Jul 24, 2020 4:40PM ET
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is anybody in here still working a 9 to 5 job?
Chris Sundo
Chris Sundo Jul 24, 2020 3:49PM ET
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consolidation along the lows, couldn't close the gap with confidence, retest on monday I guess, after trumpet causes more temper tantrums, fake news and taling down the american deaths he caused, >> where is the SEC investigating his INSIDER TRADINGS? Where is the IRS investigating his fraudulent income tax returns? Where is the DOJ investigating the involuntary manslaughter charges for causing at least 2 Americans their death by strictly misleading them about injecting bleach (a middle aged man), and a 26 year old confessing on his death bed that COVID is not the joke he was made to believe --
Chris Sundo
Chris Sundo Jul 24, 2020 3:49PM ET
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.. taling down .. >> s/b 'talking' down ..
Ricardo Diogo
Rcd72 Jul 24, 2020 3:43PM ET
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the ice is getting so thin... thinner than the market volumes
Ricardo Diogo
Rcd72 Jul 24, 2020 3:38PM ET
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it smells heavy , but really heavy crash comming!
Ricardo Diogo
Rcd72 Jul 24, 2020 3:37PM ET
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BoFA research in REUTERS" As a U.S. equity rally stalled this week, investors poured a net $24.5 billion into bonds, the third largest weekly inflows ever recorded, while pulling $3.8 billion out of stocks, according to BoFA Global Research. Gold drew its second largest inflows on record, while investors socked nearly $41 billion away in cash.
Ted Dirty
DirtyTed Jul 24, 2020 3:29PM ET
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Monday great vaccine news and recovery hopes...just an educated guess.
Robert Griffin
Robert Griffin Jul 24, 2020 3:29PM ET
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You are probably right 🤣🤣
Bulent Ok
Bulent Ok Jul 24, 2020 3:20PM ET
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Yesterday you stated mega caps made up 40% of sp500. And I bet this was done intentionally... Happy hoarding the bottoms.. Very evil.
Noelle Milton Vega
NYCeyes Jul 24, 2020 1:56PM ET
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Wall St stutters as ant walks on blue toilet paper.
Florin Tudor
Florin Tudor Jul 24, 2020 1:44PM ET
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Arbutus biopharma score!
Lemang Masak Kicap
Lemang Masak Kicap Jul 24, 2020 1:42PM ET
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where is the vaccine hope.. today supposed to be a hope day  and monday or tuesday virus fear day. well its been a while , now they use us-china news
John Pat
John Pat Jul 24, 2020 1:42PM ET
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Theres no vaccine hope on days the FED isn't pumping in stimulus :D
Camaro Camero
Camaro Jul 24, 2020 1:42PM ET
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John Pat  These last couple of day were the first real trading days we have had in a LONG time. Still made money.
Ted Dirty
DirtyTed Jul 24, 2020 1:42PM ET
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no no...Monday is the vaccine news and recovery hope day....
 
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