Tech Giants Drop After Reporting Weak Earnings

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(Newser)

Stock ended mixed on Wall Street on Wednesday as investors weighed the latest batch of earnings reports, including weak results from several heavyweight technology companies. The S&P 500 fell 28.51 points, or 0.7%, to 3,830.60. The Dow Jones Industrial Average ended just barely in the green, thanks in part to a big jump in Visa. The index rose 2.37 points, or less than 0.1%, to 31,839.11. The Nasdaq fell 228.12 points, or 2%, to 10,970.99. Small-company stocks rose more than the rest of the market. The Russell 2000 index of smaller companies rose 8.18 points, or 0.5%, to 1,804.33.

Google’s parent company, Alphabet, slumped 9.1% after it reported disappointing third-quarter financial results as advertising sales weakened, the AP reports. Weak ad sales are threatening other tech and communications companies. Music streaming service Spotify fell 13% after it reported a bigger third-quarter loss than Wall Street expected. Microsoft slid 7.7% after it reported disappointing growth for its cloud computing company, while profits fell along with PC sales. Chipmaker Texas Instruments fell 2.7% after giving investors a discouraging forecast for the current quarter. Visa rose 4.6% after reporting strong financial results and raising its dividend.

Norfolk Southern gained 2.6% after reporting a surge in profits on an increase in shipping rates. Outside of earnings, Mobileye Global, Intel’s self-driving unit, rose 38% in its market debut. Several other big companies are on deck to report earnings this week. Facebook’s parent company, Meta, will report earnings later Wednesday, while Apple reports its results on Thursday. Amazon also reports its results on Thursday along with McDonald’s and industrial bellwether Caterpillar. The government will release its first estimate on third-quarter gross domestic product on Thursday. The US economy is already slowing down and actually contracted during the first half of the year. On Friday the government will also release more data on personal income, consumption, and spending.

(Read more stock market stories.)

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