Tech stocks weigh on Wall Street
Wall Street`s major indexes fell on Friday as weak earnings reports from major technology companies led to a big drop for the sector.
The S&P 500 technology index <.splrct> fell 2.0 percent, the most among the major S&P sectors. Shares of Apple Inc
The pressure on tech stocks started on Thursday after Facebook Inc
"There`s a bit of concern perhaps growing that the bloom`s off the rose for these tech stocks, that they are not invincible," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
The Dow Jones Industrial Average <.dji> fell 76.01 points, or 0.3 percent, to 25,451.06, the S&P 500 <.spx> lost 18.62 points, or 0.66 percent, to 2,818.82 and the Nasdaq Composite <.ixic> dropped 114.77 points, or 1.46 percent, to 7,737.42.
The Nasdaq exceeded Thursday`s losses to register once again its biggest daily percentage drop in a month.
For the week, the Nasdaq shed 1.06 percent, but the S&P rose 0.61 percent. The Dow, cushioned by promising developments in trade relations between the United States and the European Union earlier this week, added 1.57 percent.
Intel and Twitter`s disappointing results overshadowed data from the Commerce Department showing the U.S. economy grew at a 4.1 percent annualised rate in the second quarter, its fastest pace in nearly four years, on higher consumer spending and farmers rushing soybean shipments to China to beat tariffs.
Economists and investors cautioned against putting too much weight on the growth, which matched expectations, as the trade-related boost is expected to unwind later this year.
"It`s old news," Ghriskey said. "Trade is bound to have an impact on the coming quarters if the tariff issue isn`t resolved."
Declining issues outnumbered advancing ones on the NYSE by a 2.03-to-1 ratio; on Nasdaq, a 3.39-to-1 ratio favoured decliners.
The S&P 500 posted 25 new 52-week highs and three new lows; the Nasdaq Composite recorded 63 new highs and 99 new lows.
Volume on U.S. exchanges was 6.81 billion shares, compared with the 6.04 billion average over the last 20 trading days.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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