US Markets Struggle: Nasdaq in Correction as Meta Misses Revenue Guidance
US Markets LIVE-26 Oct 2023: The US stock market indexes opened lower on Thursday as Meta Platforms disappoints revenue guidance in third quarterly earnings.
Dow Jones Industrial Average (DJIA) opened slightly lower by 18.76 points at the 33017.17 level, while the S&P 500 made a negative opening of 10.78 points at the 4175.99 level. The Nasdaq Composite index made a lower opening of 52.25 points at the 12768.97 level.
US Markets Live Updates Today
At 11.55 a.m. EDT, The US stock markets extended early losses on Thursday, as Dow Jones is trading lower by 108.73 points or 0.33 percent at the 32927.20 level while the S&P 500 is trading lower by 29.53 points or 0.71 percent at 4157.24 levels. The tech-heavy Nasdaq Composite also extended its early losses and is trading sharply lower by 166.20 points or 1.30 percent at 12655.03 levels.
US Market News
The US stock market indexes extended their early losses and the Nasdaq index fell sharply into correction territory as Meta Platforms disappointed its revenue guidance in the third quarterly results. Share of Facebook-parent Meta fell more than 3% due to some softness in advertising revenue so far this quarter. The social media platform has beaten on both top and bottom lines in the third quarter results.
Amazon will announce its third quarterly earnings after the closing bell on Thursday. The share price of Amazon and other big tech stocks including Alphabet, and Apple, were trading 1 to 2% lower, and this pushed the Nasdaq index into correction territory, down more than 10% from the high recorded in July.
On the economic front, in the third (July-Sept) quarter, US GDP growth came hotter than expected at 4.9% on an annual basis. The expansion is much higher than the Dow Jones economist’s forecast of 4.7% and sharper than the 2.1% reported in the April-June quarter.
The jobless claims weekly report announced by the Labor Department showed that the number of Americans filing for jobless benefits was 210,000. This is slightly higher than the expectation of 208,000 and up from the previous week.
The 10-year Treasury yield which bounced back to 4.961% on Wednesday is slightly trading lower at 4.903% on Thursday at this moment.
US Stocks In News
Southwest Airlines met expectations for quarterly profit and said it would slow capacity growth in 2024, as demand moderated. The company’s shares fell 0.5% after the results.
United Parcel Service reported slightly below expectations for revenue in the third quarter results, the company’s shares were down more than 4%.
The toymaker Hasbro declined more than 11% after the company reported weaker-than-expected third quarterly earnings.
Shares of Bristol-Myers Squibb slipped more than 4% after the drug maker reported a decline in sales of its popular blood cancer drug Revlimid due to generic competition.
Crude Oil Prices
Crude oil prices are trading lower on Thursday, giving up most of their previous session’s gains as US oil stocks rose and traders closely monitor the development of Middle East conflicts.
According to the data released by the Energy Information Administration, released on Wednesday, the US crude inventories increased by 1.4 million barrels last week. This is due to the weak demand from the world’s largest consumers.
The US WTI crude is trading lower by 1.90% at $83.75 per barrel while London-based Brent crude oil is trading lower by 1.64% at $88.67 per barrel.
US Markets at Close
The US stock markets closed lower on Thursday as Facebook-parent Meta Platforms disappointed revenue guidance in third quarterly results and dragged the big tech stocks. The other tech stocks that rely on advertising including Pinterest and Alphabet also fell sharply by 5.67% and 2.65% as these stocks gets impacted the Middle East revenue due to ongoing conflicts. Dow Jones Industrial Average (DJIA) and S&P 500 declined 0.76 percent and 1.18 percent respectively, while the tech-heavy Nasdaq was down 1.76 percent on Thursday.
Also, read – Nasdaq Slide Continues, Dow Jones Holds Steady Amid Tech Sector Turbulence
Stock Market Prediction Next Week (23- 27 Oct 2023)
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