The Dow Jones Industrial Average deepened losses at midday Friday as a volatile week of trading neared its conclusion. The S&P 500 and Nasdaq fell about 2%. Earnings reports from Amazon.com and Apple late Thursday sent both stocks lower.
The Dow Jones industrials were down 1.4%, with the blue-chip index poised for yet another weekly decline after four straight weeks of losses. The Nasdaq lost 2.1% and led the downside while the S&P 500 declined 2%. The small-cap Russell 2000 was down only 0.2%. Volume was lower on the Nasdaq and on the NYSE vs. the same time on Thursday.
The Innovator IBD 50 ETF, a benchmark for growth stocks, fell 0.4%, outperforming the major indexes. The index remains well below its 50-day and 200-day moving averages as the market has been especially damaging to growth stocks.
Apple, Amazon Stock Down After Earnings
Apple and Amazon earnings made headlines in today's market as both tech giants fell after their results late Thursday. Amazon stock fared the worst, falling over 12% and gapping down in heavy volume.
The firm reported a steep first-quarter loss. Its revenue forecast fell short of expectations as the company cited Russia's invasion of Ukraine a contributing factor.
Amazon reported an adjusted loss of $7.56 a share on revenue of $116.4 billion. Analysts were expecting earnings of $8.35 a share on revenue of $116.5 billion, according to FactSet. Shares are below their 50-day and 200-day moving averages.
Unlike Amazon, Apple beat Wall Street's targets for its fiscal second quarter. Shares sold off around 1.8% but are getting support at their 200-day line. Earnings of $1.52 a share on sales of $97.28 billion exceeded analysts views for earnings of $1.42 a share on revenue of $94 billion. Both its top and bottom-line increased 9% year-over-year.
The Cupertino, Calif.-based firm also raised its quarterly dividend 5% to 23 cents a share. AAPL stock is trading 12% below a 179.71 buy point from a deep handle.
Dow Jones Oil Giant Reports Earnings
Dow Jones component Chevron reported mixed first-quarter earnings on Friday. Shares dropped 2% after reporting an earnings miss of $3.36 a share. Analysts expected Chevron earnings to nearly quadruple from a year earlier to $3.41 a share. Revenue spiked 70% to $54.37 billion. Revenue was seen jumping to $51.14 billion.
Chevron is forming a flat base with 174.86 buy point. The stock is fighting to regain its 50-day line.
Former Dow Jones component Exxon Mobil also traded lower after earnings, down 0.5%.
Exxon's bottom line jumped to $2.07 a share vs. 65 cents a year ago. Revenue climbed 53% to $90.5 billion. Analysts polled by FactSet expected Exxon earnings to increase to $2.23 a share. Revenue was seen rising 40% to $82.83 billion.
Exxon is forming a cup-with-handle base with 89.90 entry. Shares are holding nicely above the 50-day and 21-day moving averages and remain just 3% below the buy point. The oil and gas integrated industry group, which includes Exxon, currently ranks No. 7 out of the 197 IBD industry groups.
Crude oil prices moved 1.2% higher on Friday to $106 per barrel.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
