Wall Street Today: Wall Street tech stocks endure worst day since May

Moomoo Recap US joined discussion · Jul 27, 2021 20:04

Wall Street Today: Wall Street tech stocks endure worst day since May

Asia stocks track U.S. decline: markets wrap

Asian stocks followed Wall Street lower at the open Wednesday.

Equities slipped modestly in Japan, Australia and South Korea. Futures rose in Hong Kong.

U.S. contracts pared losses following the tech-heavy Nasdaq 100’s biggest decline in more than two months as major American equity indexes fell. While earnings have helped U.S. shares, results from Apple Inc., Microsoft Corp. and Alphabet Inc. got a mixed response: Apple and Microsoft fell in extended trading amid concern over slower growth, while Alphabet rose on Google’s strong sales.

Alphabet beats analysts’ estimates on surge of retail ads

$Alphabet-C(GOOG.US)$ delivered turbocharged sales growth in the past quarter, underscoring its status as the world’s most potent advertising engine.

Revenue, excluding payments to distribution partners, was about $51 billion in the period ended June 30, the Mountain View, California-based company said Tuesday in a statement. Analysts projected $46.1 billion, according to data compiled by Bloomberg. Profit was $27.26 a share, topping the average estimate of $19.35.

A big day for tech earnings: what to know

$Microsoft(MSFT.US)$ reported its highest quarterly revenue ever, exceeding expectations, and it projected overall sales for the current quarter of up to $44.2 billion.

Google parent $Alphabet-C(GOOG.US)$ had its largest percentage jump in quarterly sales in more than 14 years.

$Apple(AAPL.US)$ posted its best fiscal third quarter in its 45-year history.

Apple warns that growth will slow after record-setting sales

Apple Inc. slipped as much as 2.9% in late trading after warning that sales growth may be slowing and supplies are getting tight, putting a damper on investor excitement following a record-setting third quarter.

The company said on a conference call Tuesday that supply constraints will affect the iPhone and iPad in the current quarter. Decelerating demand for services also will drive the slowdown. Apple declined to provide specific revenue forecasts, a practice it adopted during the pandemic.

The cautious remarks followed a sales gain of 36% in the third quarter, with revenue of $81.4 billion shattering Wall Street’s $73.8 billion estimate.

Microsoft posts big earnings beat and gives optimistic revenue forecast

$Microsoft(MSFT.US)$ issued fiscal fourth-quarter earnings and quarterly revenue guidance that exceeded expectations.

Here’s how the company did:

• Earnings: $2.17 per share, adjusted, vs. $1.92 per share as expected by analysts, according to Refinitiv.

• Revenue: $46.15 billion, vs. $44.24 billion as expected by analysts, according to Refinitiv.

Revenue rose 21% year over year in the quarter, which ended June 30, according to a statement. Revenue had increased by 19% in the previous quarter. Net income increased by 47%.

CDC reverses indoor mask policy, saying fully vaccinated people and kids should wear them indoors

The CDC recommended that fully vaccinated people begin wearing masks indoors again in places with high Covid transmission rates.

Experts say Covid prevention strategies remain critical to protect people from the virus, especially in areas of moderate-to-high community transmission levels.

Wall Street tech stocks endure worst day since May

Wall Street’s tech-heavy benchmark had its worst day in two-and-a-half months on Tuesday.

The Nasdaq Composite index fell 1.2 per cent, ahead of earnings announcements from big technology companies including Apple, Microsoft, and Alphabet, Google’s parent company. The slide marks the index’s biggest daily fall since mid-May.

IMF warns that inflation could prove to be persistent and central banks may need to act

Higher prices increase the chances that central banks will start to curb their ultra-accommodative monetary policies, such as a tapering of market-friendly stimulus like asset purchases.

The IMF had already pointed out that if the U.S. were to provide more fiscal support then this could increase inflationary pressures even further and lead to a hike in interest rates earlier-than-expected.

The IMF on Tuesday kept its global growth forecast at 6% for 2021, but it revised its expectations for 2022.