Dow opens higher on Friday, but the Nasdaq is held back by a fall in Amazon shares
The Nasdaq was down on Friday after disappointing Amazon earnings were added to the already strained index.
The Nasdaq owned 0.2%. The Dow Jones Industrial Average added 127 points, or 0.4%. The S&P 500 fell 0.1%.
Amazon led the decline in premarket trading, plunging 13% after the company posted weaker-than-expected quarterly revenue and released a disappointing fourth-quarter sales forecast.
Apple shares were also initially lower in extended trading after the company reported weaker-than-expected iPhone revenue, but have since reversed and last risen around 0.7%. The company has consistently exceeded Wall Street estimates for quarterly earnings and revenue.
The names of the technology were again a dark cloud in the market on Thursday. The Nasdaq Composite lost 1.6%, as Meta and other tech stocks routed following disappointing results from Facebook’s parent company. Meanwhile, the Dow Jones rose 194.17 points, or 0.6%, for its fifth straight day of victories, helped by members’ chain earnings and GDP data that suggested inflation could lessen.
The stock market has fractured this week as investors ditch tech stocks following weak earnings and outlook from Microsoft, Alphabet and Meta and look to economically sensitive stocks that will benefit if the US economy can avoid a recession.
“The weight of technology in the S&P 500 yesterday painted a more negative picture of the market than the actual reality, as most sectors of the market posted decent rallies or fell only modestly,” said Tom Essaye, president of Stevens Report Research.
“Looking ahead, we remain in the thick of earnings season and earnings will continue to dominate industry trading through the end of next week,” he said. “Technology aside, it’s fair to say that this earnings season so far hasn’t been as bad as feared.”
Friday brings a quieter day for gains. Oil companies Chevron and Exxon both beat expectations on their pre-bell release, sending shares up 2.5% and 2.4%, respectively.
Dow Jones futures turned positive shortly after the release of Bureau of Economic Analysis data that showed inflation was in line with expectations. Data focused on consumer health was better than expected.
The Dow Jones and S&P are poised to end the week up around 3% and 1.5%, respectively. The Nasdaq Composite is expected to end down about 1%.