Mon. Dec 6th, 2021

Other tech minds – including Apple Inc., Google parent Alphabet Inc. and Facebook Inc. – have also taken a dive.

The Nasdaq and S&P 500 indices fell on Friday after a declining quarterly earnings report from, while data showing a sharp rise in consumer spending in June boosted optimism about a steady economic recovery. Inc. is down 6.9 percent, following the worst day since March 2020, after the company said sales growth would slow in the coming quarters as customers ventured more out of the home.

Shares of other tech minds — including Apple Inc., Google parent Alphabet Inc. and Facebook Inc., which benefited from people staying indoors last year because of COVID-19 curbs — fell between 0.6 percent and 1.8 percent.

“Expectations across the board were pretty high for corporate earnings and the reason we’re seeing some of the stocks fall despite positive results is because people are expecting exponential growth, which is honestly too high to expect,” said Randy Frederick, managing director. director of trade and derivatives at Charles Schwab.

Hopes of a steady recovery from the pandemic in the US economy have put the benchmark index on track for its sixth consecutive monthly profit, but the rapid spread of the Delta variant and rising inflation have kept sentiment in check.

Data showed Friday that U.S. consumer spending rose more than expected in June, but part of the rise reflects higher prices, with annual inflation accelerating beyond the 2 percent target of the Federal Reserve.

‘People were obviously worried last night because Amazon was missing on the top line [estimates], but spending is still there; it has just moved from online spending to more experience services, ”says Thomas Hayes, managing member of Great Hill Capital LLC in New York.

“It shows that consumers are spending their money and not accumulating it as they would if they were worried about economic prospects.”

Earlier this week, the Fed reiterated its view that higher inflation would be temporary.

At 12:06 ET (16:06 GMT), the S&P 500 was down 0.53 percent, the Nasdaq Composite Index was down 0.68 percent and the Dow Jones Industrial Average was down 0.39 percent.

Economically sensitive stocks, including industrial, energy and finance, fell, but the so-called value stocks would outperform growth-linked stocks such as technology for the week.

“We are positive about cyclical and consumer spending,” said Michael James, managing director of stock exchange at Wedbush Securities in Los Angeles.

‘Cyclical sectors are likely to continue to expand and consumer spending to increase. Restaurants and specialist shops are two areas for which we have a fairly optimistic scenario. “

Procter & Gamble Co rose 2.8% as it forecast higher core earnings for this year, while US-listed shares of Canada’s Restaurant Brands International Inc rose 4.7% after Burger King owner beat quarterly earnings estimates .

Pinterest Inc. dropped 19.2 percent to its lowest level in more than two months after saying U.S. user growth was slowing as people who used the platform for crafts and DIY projects stepped out more during the peak of the pandemic.

Caterpillar Inc reversed and fell by 3.8%. The company made an increase in adjusted profit in the second quarter due to a recovery in global economic activity.

Overall, second-quarter results came from about half of the S&P 500 businesses, of which nearly 91 percent exceeded profit estimates, according to Refinitiv data.

Declining issues were more than 1.48 to 1 on the NYSE and 1.43 to 1 on the Nasdaq.

The S&P index recorded 56 new 52-week highs and one new low, while the Nasdaq recorded 67 new highs and 61 new lows.

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