(Alliance News) - The S&P 500 and Nasdaq Composite slid for a sixth straight session as heavy falls in Nvidia and Netflix hit sentiment towards tech stocks ahead of big-cap earnings next week.
Blue-chips bucked the despondent mood, boosted by American Express and Paramount, while nerves surrounding the situation in the Middle East calmed as the trading session wore on.
In New York, the Dow Jones Industrial Average rose 211.02 points, 0.6%, to 37,986.40. The S&P 500 fell 43.89 points, 0.9%, at 4,967.23 and the Nasdaq Composite slumped 319.49 points, 2.1%, at 15,282.01.
For the week, the Dow lost 0.2%, the S&P fell 3.5% and the Nasdaq tumbled 6.1%.
Financial markets had initially been knocked by reported explosions in the central province of Isfahan, Iran, on Friday, with US media quoting officials saying Israel had carried out retaliatory strikes on its arch-rival.
Israel had previously warned it would hit back after Iran fired missiles and drones at Israel almost a week ago, in retaliation for a deadly strike on Iran's embassy in Syria which Tehran blamed on its foe.
But after an initial bout of volatility, commodity markets in particular settled down.
Oil prices rose but were well below earlier highs. Brent oil rose slightly to USD87.15 a barrel late Friday, up from USD87.08 on Thursday. West Texas Intermediate rose to USD83.16 a barrel from USD82.71. Gold climbed to USD2,387.45 an ounce from USD2,380.31.
Fawad Razaqzad, a market analyst at City Index, noted that indices managed to "regain their poise" as investors seemed to downplay the impact of what "apparently was a small-scale Israeli strike, after the initial panic overnight".
"Hopefully, an open conflict can be averted. That being said, nothing can be taken for granted. The markets may remain on the edge, especially considering the looming weekend risk," he commented.
The pound traded at USD1.2371 late on Friday, down from USD1.2437 at the New York equities close on Thursday. The euro traded at USD1.0654, up versus USD1.0643. Versus the yen, the greenback edged up to JPY154.63 from JPY154.61.
On Wall Street, big tech sold-off with Nvidia down 10%, Advanced Micro Devices down 5.4%, Meta Platforms down 4.1% and Amazon down 2.6%.
Next week, more than half of the Magnificent Seven report earnings with Tesla, Meta, Alphabet and Microsoft due to update investors.
"Investors are expecting not just strong results, but strong guidance," said Quincy Krosby, chief global strategist at LPL Financial, quoted by Bloomberg.
"Any disappointment from the mega-tech names reporting could push this week's oversold market deeper into oversold territory."
Ahead of those earnings, shares in Netflix plunged 9.1% as grumbles about low-end full-year revenue guidance, and a pledge to halt some financial disclosures, took the shine off a stellar first quarter.
First quarter revenue, profit and subscriber figures all topped market forecasts but full-year revenue guidance was below consensus.
Netflix also said it will stop reporting paid quarterly membership and revenue per subscriber, starting with the first quarter of 2025.
"To us, the financial results suggest the equity should trade higher on the back of these results. However, we suspect the prospect of reduced disclosures may give investors pause," analysts at Citi said.
In the three months to March 31, the Californian-based streaming service reported revenue of USD9.37 billion, up 15% from USD8.16 billion a year prior.
Net income jumped 78% to USD2.33 billion from USD1.31 billion while diluted earnings per share improved to USD5.28, up 83% from USD2.88.
The figures topped LSEG consensus forecast earnings per share of USD4.52 and revenue of USD9.28 billion.
However, the firm provided a 2024 revenue growth outlook range that at the midpoint basis fell below consensus, Citi explained.
American Express fared better, rising 6.2%, after backing full-year guidance as first quarter profit leapt amid a rise in card spending and card membership numbers.
In the three months to March 31, American Express said net income jumped 34% to USD2.44 billion from USD1.82 billion the year prior, and diluted earnings per share increased 39% to USD3.33 from USD2.40.
Revenue rose 11% to USD15.80 billion from USD14.28 billion.
Chair & Chief Executive Stephen Squeri said: "We have started 2024 off strong, with our first-quarter results reflecting the positive trends we have seen in our business the last several years."
Procter & Gamble nudged up 0.5% after it reported improved profitability in the first quarter, although sales remained broadly flat.
The consumer goods firm, whose brands include Gillette razors and Pampers nappies, said in the three months to March 31 net income rose 10% to USD3.78 billion, from USD3.42 billion a year prior. Earnings per diluted share climbed 11% to USD1.52 from USD1.37.
Sales edged up by 1% to USD20.20 billion from USD20.07 billion with organic sales growth of 3% reflecting higher pricing. Mix and volume had a neutral impact on sales for the quarter.
Beauty sales rose 2%, Grooming by 3%, Health Care by 2%, Fabric & Home Care by 2% while Baby, Feminine & Family Care fell 2%.
Analysts pointed out that organic sales growth was a touch below expectations but backed the firm to hit its annual targets.
Elsewhere, Paramount soared 13%, as Bloomberg reported that Apollo Global Management and Sony are considering a joint offer for the company.
Bloomberg noted that Sony and Apollo's entry would complicate a deal already in the works, as Paramount is holding exclusive talks with Skydance Media, the independent film and TV company led by David Ellison.
In London on Friday, the FTSE 100 closed up 0.2%. Frankfurt's DAX 40 closed down 0.5% and the CAC 40 in Paris ended flat.
In Tokyo, the Nikkei 225 tumbled 2.7%. The Shanghai Composite in China ended down 0.3%, while the Hang Seng closed down 1.0%. The S&P/ASX 200 ended down 1.0% in Sydney.
The New York corporate calendar on Monday has first quarter results from Ameriprise Financial and Verizon Communications.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News
NEW YORK MARKET CLOSE: Nasdaq's losing run hits six as Nvidia dips 10%
(Alliance News) - The S&P 500 and Nasdaq Composite slid for a sixth straight session as heavy falls in Nvidia and Netflix hit sentiment towards tech stocks ahead of big-cap earnings next week.
Blue-chips bucked the despondent mood, boosted by American Express and Paramount, while nerves surrounding the situation in the Middle East calmed as the trading session wore on.
In New York, the Dow Jones Industrial Average rose 211.02 points, 0.6%, to 37,986.40. The S&P 500 fell 43.89 points, 0.9%, at 4,967.23 and the Nasdaq Composite slumped 319.49 points, 2.1%, at 15,282.01.
For the week, the Dow lost 0.2%, the S&P fell 3.5% and the Nasdaq tumbled 6.1%.
Financial markets had initially been knocked by reported explosions in the central province of Isfahan, Iran, on Friday, with US media quoting officials saying Israel had carried out retaliatory strikes on its arch-rival.
Israel had previously warned it would hit back after Iran fired missiles and drones at Israel almost a week ago, in retaliation for a deadly strike on Iran's embassy in Syria which Tehran blamed on its foe.
But after an initial bout of volatility, commodity markets in particular settled down.
Oil prices rose but were well below earlier highs. Brent oil rose slightly to USD87.15 a barrel late Friday, up from USD87.08 on Thursday. West Texas Intermediate rose to USD83.16 a barrel from USD82.71. Gold climbed to USD2,387.45 an ounce from USD2,380.31.
Fawad Razaqzad, a market analyst at City Index, noted that indices managed to "regain their poise" as investors seemed to downplay the impact of what "apparently was a small-scale Israeli strike, after the initial panic overnight".
"Hopefully, an open conflict can be averted. That being said, nothing can be taken for granted. The markets may remain on the edge, especially considering the looming weekend risk," he commented.
The pound traded at USD1.2371 late on Friday, down from USD1.2437 at the New York equities close on Thursday. The euro traded at USD1.0654, up versus USD1.0643. Versus the yen, the greenback edged up to JPY154.63 from JPY154.61.
On Wall Street, big tech sold-off with Nvidia down 10%, Advanced Micro Devices down 5.4%, Meta Platforms down 4.1% and Amazon down 2.6%.
Next week, more than half of the Magnificent Seven report earnings with Tesla, Meta, Alphabet and Microsoft due to update investors.
"Investors are expecting not just strong results, but strong guidance," said Quincy Krosby, chief global strategist at LPL Financial, quoted by Bloomberg.
"Any disappointment from the mega-tech names reporting could push this week's oversold market deeper into oversold territory."
Ahead of those earnings, shares in Netflix plunged 9.1% as grumbles about low-end full-year revenue guidance, and a pledge to halt some financial disclosures, took the shine off a stellar first quarter.
First quarter revenue, profit and subscriber figures all topped market forecasts but full-year revenue guidance was below consensus.
Netflix also said it will stop reporting paid quarterly membership and revenue per subscriber, starting with the first quarter of 2025.
"To us, the financial results suggest the equity should trade higher on the back of these results. However, we suspect the prospect of reduced disclosures may give investors pause," analysts at Citi said.
In the three months to March 31, the Californian-based streaming service reported revenue of USD9.37 billion, up 15% from USD8.16 billion a year prior.
Net income jumped 78% to USD2.33 billion from USD1.31 billion while diluted earnings per share improved to USD5.28, up 83% from USD2.88.
The figures topped LSEG consensus forecast earnings per share of USD4.52 and revenue of USD9.28 billion.
However, the firm provided a 2024 revenue growth outlook range that at the midpoint basis fell below consensus, Citi explained.
American Express fared better, rising 6.2%, after backing full-year guidance as first quarter profit leapt amid a rise in card spending and card membership numbers.
In the three months to March 31, American Express said net income jumped 34% to USD2.44 billion from USD1.82 billion the year prior, and diluted earnings per share increased 39% to USD3.33 from USD2.40.
Revenue rose 11% to USD15.80 billion from USD14.28 billion.
Chair & Chief Executive Stephen Squeri said: "We have started 2024 off strong, with our first-quarter results reflecting the positive trends we have seen in our business the last several years."
Procter & Gamble nudged up 0.5% after it reported improved profitability in the first quarter, although sales remained broadly flat.
The consumer goods firm, whose brands include Gillette razors and Pampers nappies, said in the three months to March 31 net income rose 10% to USD3.78 billion, from USD3.42 billion a year prior. Earnings per diluted share climbed 11% to USD1.52 from USD1.37.
Sales edged up by 1% to USD20.20 billion from USD20.07 billion with organic sales growth of 3% reflecting higher pricing. Mix and volume had a neutral impact on sales for the quarter.
Beauty sales rose 2%, Grooming by 3%, Health Care by 2%, Fabric & Home Care by 2% while Baby, Feminine & Family Care fell 2%.
Analysts pointed out that organic sales growth was a touch below expectations but backed the firm to hit its annual targets.
Elsewhere, Paramount soared 13%, as Bloomberg reported that Apollo Global Management and Sony are considering a joint offer for the company.
Bloomberg noted that Sony and Apollo's entry would complicate a deal already in the works, as Paramount is holding exclusive talks with Skydance Media, the independent film and TV company led by David Ellison.
In London on Friday, the FTSE 100 closed up 0.2%. Frankfurt's DAX 40 closed down 0.5% and the CAC 40 in Paris ended flat.
In Tokyo, the Nikkei 225 tumbled 2.7%. The Shanghai Composite in China ended down 0.3%, while the Hang Seng closed down 1.0%. The S&P/ASX 200 ended down 1.0% in Sydney.
The New York corporate calendar on Monday has first quarter results from Ameriprise Financial and Verizon Communications.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News