Dow tumbles 350 points as major tech earnings land short of hopes

  • US stock indexes slid on Friday after quarterly reports from mega-cap tech players disappointed investors.
  • Amazon’s first-quarter profit landed below Wall Street estimates, while Apple’s decision to withhold guidance for the first time in a decade dragged on trader sentiments.
  • Oil extended its rebound to a third day, with WTI crude contracts topping $US20 per barrel.
  • Watch major US indexes update live here.

Major US equity indexes dipped on Friday as quarterly reports from mega-cap tech firms upset investors.

Amazon reported its first-quarter results after Thursday’s close, posting profits below analyst hopes and announcing it will spend all of its second-quarter earnings on measures to combat coronavirus. Shares slid as much as 6% in early trading.

Apple’s fiscal second-quarter report dragged on indexes as well. While the iPhone maker’s results landed above Wall Street’s lowered estimates, the company’s decision to withhold profit guidance for the first time in a decade rankled investors. Apple stock slid roughly 2% in early trading.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Friday:

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The two companies’ earnings misses follow generally upbeat results from Facebook, Microsoft, and Alphabet earlier in the week.

West Texas Intermediate crude oil continued a three-day rally, climbing as much as 8.7%, to $US20.48 per barrel on Friday. The commodity has seen a broad recovery since plunging to negative prices on April 20, though producers’ earnings reports detail the lasting impact of the oil market turbulence. ExxonMobil posted its first quarterly loss in 32 years on Friday, warning “unprecedented pressure” from the coronavirus pandemic tore into margins.

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Brent crude, oil’s international standard, traded 10% higher, at $US27.88 per barrel on Friday.

The end-of-week losses follow a mild drop across indexes on Thursday. The Dow closed nearly 300 points lower after data showed another 3.8 million Americans filing for unemployment last week. The latest release pushed the metric’s six-week total above 30 million.

Despite Thursday’s decline, April still served as the Dow and S&P 500’s best month since 1987 as stock prices surged from late-March lows.

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