After long losing streak, U.S. stocks surge on solid earnings

Adjust Comment Print

After the closing bell, Microsoft rose 2.7 percent following the release of its results.

Despite the tumbling stock prices, the US economy looks solid. Technology and consumer-focused companies accounted for much of the sell-off. Shares on Thursday opened higher, regaining some of the ground lost earlier this week.

The Dow Jones Industrial Average fell 296.24 points, or 1.19 per cent, to 24,688.31, the S&P 500 lost 46.88 points, or 1.73 per cent, to 2,658.69 the Nasdaq Composite dropped 151.12 points, or 2.07 per cent, to 7,167.21.

As in NY, losses were heaviest for technology companies. Hong Kong's Hang Seng sank 1.1 per cent.

While economic growth is mostly healthy, disappointing corporate results and forecasts this earnings season have shown how tariffs, rising wages and borrowing costs as well as jitters over geopolitical events are hurting companies. The 30-stock index rose 71 points, or 0.3 per cent, to 25,259.

The S&P 500 index fell 42 points, or 1.5 percent, to 2,664.

US stocks plunged on Friday as grim earnings reports from Amazon and Alphabet rekindled a rush to dump technology and high-growth stocks, but data showing economic growth in the last quarter slowed less than expected provided some relief.

Declining issues outnumbered advancing ones on the NYSE by a 3.38-to-1 ratio; on Nasdaq, a 5.42-to-1 ratio favored decliners. Strong results from major companies including Microsoft, Visa and Comcast are sending USA stocks higher Thursday morning as the market found its footing after three weeks of steep declines. All three of the major indices dropped after underwhelming quarterly financial results from major internet companies - like Amazon and Google-parent company Alphabet - spooked markets. The Nasdaq has taken bigger losses than other USA indexes in recent weeks.

Red Sox stymie Dodgers to grab 2-0 World Series lead
Boston opened the scoring in the second inning when Xander Bogaerts doubled and scored on Ian Kinsler's single. These bullpen pitchers will be fired up, raring to go, for the biggest games a baseball player can play in.

The Russell 2000 is down 66.81 points, or 4.4 per cent.

Shares in iRobot plunged 12.3 per cent to United States dollars 80.49 after the robotics technology company said tariffs will reduce its profitability in the fourth quarter.

Bond prices rose as investors sought safety, sending yields lower. But dour forecasts have pulled down fourth-quarter growth estimates to 19.4 percent from 19.9 percent, according to I/B/E/S data from Refinitiv.

The S&P 500 index added 61 points to 2,717 as of 3 p.m.

Chipmaker Micron Technology (MU.O) lost 3.8 percent in extended trade after Western Digital (WDC.O) said it was taking steps to align its output of flash memory chips with projected weak demand. The yield on the 10-year Treasury note fell to 3.08 percent from 3.13 percent late Thursday.

The Dow Jones fell 1.2%, while the Nasdaq slumped more than 2%. Germany's DAX slipped 1.1 percent, while France's CAC 40 dropped 1.8 percent.

Boeing was one of the few gainers Wednesday. Brent crude, the benchmark for worldwide oil prices, rose 0.9 percent to $76.89 a barrel in London. The fall came after the online retailer and cloud computing heavyweight reported that its quarterly net sales rose to $56.58 billion from $43.74 billion a year earlier.