Wall Street ends lower, weighed down by Apple
Wall Street ended lower on Friday, with Apple, Alphabet and other tech-related companies weighing on the S&P 500 and Nasdaq despite recent strong quarterly earnings reports.
Amazon.com Inc (AMZN.O) was almost unchanged after it posted record profit late on Thursday and signaled that consumers would keep spending in a growing U.S. economy. Amazon had been up over 2% earlier in the session. read more
While megacap favorites posted largely strong earnings in the first quarter, their shares have struggled to maintain the upward trajectory that many had coming into reporting season.
“There is a sense that maybe next quarter is as good as it’s going to get, and we’re going to roll over, particularly among the Nasdaq stocks and Big Tech stocks that benefited from the pandemic,” said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida.
Of the 303 companies in the S&P 500 that have reported so far, 87% have topped analysts’ earnings estimates, with Refinitiv IBES data now predicting a 46% jump in profit growth.
Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government. read more
The Nasdaq Composite (.IXIC) dropped 0.85%, to 13,962.68.
AbbVie Inc (ABBV.N)rose after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States.
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