(MENAFN- Baystreet.ca) Earnings Season Rally Loses Steam, Stocks Pummeled
The S&P 500 fell from a record high on Wednesday as the momentum from a strong earnings season started to fade.
The Dow Jones Industrials toppled 266.19 points to 35,490.69, from Tuesday's all-time record, dragged down by Visa.
The S&P 500 dipped 23.11 points to 4,551.68, from Tuesday's record high.
The NASDAQ Composite picked up 75.33 points to 15.311.04, mid a jump in Microsoft and Alphabet shares.
Strong results have been key to pushing the major averages to new highs. The S&P 500 has rallied more than 6% in October, on track for its best monthly performance since November 2020. The equity benchmark reached its 57th record close of 2021 on Tuesday.
Microsoft shares jumped 4.2% after the tech company reported earnings that exceeded analysts' estimates and the fastest revenue growth since 2018. Google-parent Alphabet also popped 5% following a stronger-than-expected quarterly report.
Visa's stock slipped 6.8% after issuing a revenue outlook that some analysts considered conservative. Plus, the Justice Department is investigating Visa's relationship with financial-technology firms, sources familiar with the matter told Dow Jones.
General Motors shares fell more than 4% even after the industrial giant topped Wall Street's earnings and revenue estimates for the third quarter. Boeing saw its stock falling 1.4% after the aircraft maker posted a wider-than-expected loss.
Robinhood shares were getting slammed, down nearly 11% the day after the trading app reported revenue well below expectations primarily due to weakness in crypto trading. Twitter shares also fell 9% on concerns about expense guidance, despite strong earnings.
So far roughly 38% of the S&P 500 has reported earnings. Of the names that have posted quarterly updates, 83% have topped earnings expectations, while 79% have exceeded revenue estimates.
Texas Instruments shares tumbled more than 4% after the company missed revenue estimates while Visa fell 6% despite beating on the top and bottom lines. Enphase Energy leaped 50% after reporting record revenue in face of supply chain headwinds.
Coca-Cola rose about 2% after the company posted a beat on the top and bottom lines and raised its outlook, saying the business was getting stronger particularly in areas where the COVID recovery has been the best.
Prices for 10-year Treasurys gained sharply, lowering yields to 1.54% from Tuesday's 1.61%. Treasury prices and yields move in opposite directions.
Oil prices weakened $2.53 to $82.12 U.S. a barrel.
Gold prices recovered $4.90 to $1,798.30 U.S. an ounce.
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