Wall Street Finishes Flat; Microsoft & Alphabet Tumble
On Friday, the Wall Street finished flat after the unsatisfactory quarterly reports from Alphabet & Microsoft slammed the tech stocks, while an upsurge in the oil prices had lifted the energy shares.
The S&P technology sector reduced 1.9% which is the worst decline since Feb., with Facebook down 2.5% & Intel falling 1.03%
Microsoft had declined 7.17% and the Google-parent Alphabet lost 5.41% as the investors punished both the companies for missing the profit & the revenue estimates.
Aided by softer dollar & recovery in the oil prices, S&P 500 rebounded from a vertical selloff earlier this year and it is only 2% of the high record from last May’s.
Wall Street has the rock-bottom expectations as the companies post their 1st-quarter results over next few weeks, with the S&P 500 companies on average seen recording a 7.1% decline in the profit.
The Crude rose over 1% on the signs of sturdy U.S. gasoline consumption, diminishing the production around the globe & oilfield outages.
The Oil prices moved in the lockstep with the United States’ stocks for a several months & some of the investors expected more gains ne So far, 77% of the first-quarter earnings exceeded the expectations.
“What is driving the market right now is earnings & oil,” said Mr. Thomas Wilson, who is a Managing Director of the Wealth Advisory at Brinker Capital.
“If the earnings results come in above very low bar of expectations that are out there, and you combine that with a continued rising price of oil, that’d equate to an upward trend in the market next week.”
Dow Jones industrial average edged upto 0.12% to end at 18,003.75 points, while S&P 500 finished flat at 2,091.58.