Dow drops 100 points, Nasdaq falls more than 1% as tech slides
July 30, 2018
Breakfast for Business Radio Interview
August 1, 2018* FAANG stocks look to rebound after Monday’s losses
* Data shows consumer spending up in June
* Archer Daniels, Arconic, Ralph Lauren rise after results
By Amy Caren Daniel
July 31 (Reuters) – Wall Street was set to open higher onTuesday as technology stocks looked to rebound after awidespread sell-off in the prior session and as economic datashowed U.S. consumer spending rose solidly in June.
The technology sector .SPLRCT , which had led the equitymarket to record highs, has lost more than 5 percent in the pastthree days after lackluster earnings from Netflix, Facebook andTwitter raised concerns about the future growth of high-flyingcompanies.
Shares of the so-called FAANG group were higher. FacebookFB.O , Amazon.comAMZN.O , NetflixNFLX.O and Google parentAlphabet GOOGL.O were up between 0.20 and 0.73 percent.
“It’s a technical reaction, as technology stocks have soldoff quite sharply,” said Peter Cardillo, chief market economistat Spartan Capital Securities in New York.
“If you have several days of declines, you have some bargainhunting coming in and that’s what is temporarily halting thefall.”
Investors are now pinning their hopes on AppleAAPL.O , thelast of the FAANGs to report results, which is due after thebell. The stock was up 0.3 percent.
The jitters about the future of technology stocks comes asdata continues to show the economy is growing at a healthy clip.
The Commerce Department said U.S. consumer spendingincreased 0.4 percent last month as households spent more onrestaurants and accommodation, building a strong base for theeconomy heading into the third quarter, while inflation rosemoderately. urn:newsml:reuters.com:*:nLNSVIEEHJ
The Federal Reserve, due to start a two-day meeting later inthe day, is expected to leave interest rates unchanged afterincreasing borrowing costs in June for the second time thisyear. The Fed has forecast two more rate hikes by December.
At 8:49 a.m. ET, Dow e-minis 1YMc1 were up 13 points, or0.05 percent. S&P 500 e-minis ESc1 were up 6.5 points, or 0.23percent and Nasdaq 100 e-minis NQc1 were up 19 points, or 0.26percent.
Archer Daniels ADM.N jumped 4.6 percent and ArconicARNC.N shares climbed 2.7 percent after both companiesreported better-than-expected quarterly revenue and profit. urn:newsml:reuters.com:*:nL4N1UR57V
Ralph LaurenRL.N gained 3 percent after the luxurydesigner brand reported quarterly profit and revenue that toppedanalysts’ estimates. urn:newsml:reuters.com:*:nL4N1UR5M4
Qualcomm’sQCOM.O shares were up 2.8 percent after thechipmaker commenced buy back of $10 billion of its shares, whileTwitter rose 1.5 percent after brokerage Nomura upgraded thestock.
Chipotle Mexican GrillCMG.N slipped 2.1 percent after theburrito chain operator shut a restaurant in Ohio followingreports of customers getting severely ill.
Pfizer’s PFE.N shares dipped 1.4 percent after thedrugmaker lowered its full-year revenue forecast due to thestrong dollar. urn:newsml:reuters.com:*:nL4N1UR547
Procter & GamblePG.N dropped 1.2 percent after theconsumer goods company reported lower-than-expected quarterlyrevenue. urn:newsml:reuters.com:*:nL4N1UR593 (Reporting by Amy Caren Daniel in Bengaluru; Editing by ShounakDasgupta) (([email protected] ; within U.S. +1 646 2238780; outside U.S. +91 80 6749 9250 ; Reuters Messaging:[email protected]))
