Catch up on the day's top Wall Street news with this recap from The Fly.
Stocks opened sharply lower and continued to fall throughout the morning as earnings from both Alphabet (GOOG) and Amazon.com (AMZN) disappointed Wall Street. By midday, the market began to pare it losses, cutting them in half before stalling. As the session moved into its final hour, the sellers emerged and began to pressure the averages heading into the weekend. With today’s losses, the S&P is officially in correction territory, having fallen more than 10% from its recent all-time high.
ECONOMIC EVENTS: In the U.S., GDP grew at a 3.5% rate in Q3, beating most estimates. The final October print from the University of Michigan consumer sentiment survey was down 1.5 points from last month at 98.6. That was also below the 99.0 preliminary October reading. In energy news, Baker Hughes reported that the U.S. rig count is up 1 rig from last week to 1,068 .
COMPANY NEWS: Shares of Amazon dropped 7.8% after the company's revenue and unit growth in Q3 came in modestly below expectations and Q4 guidance disappointed with 15% revenue growth at the midpoint.
Class A shares of Alphabet also fell 1.8% after the company reported Q3 revenue that missed expectations.
In contrast to the disappointments from Amazon and Alphabet, Intel (INTC) posted a "beat and raise" report, calling out stronger than expected customer demand across its PC and data-centric businesses for its strong third quarter. Shares of the chipmaker were a rare bright spot on the Nasdaq, rising 3.1%.
In non-earnings news, Facebook (FB) shares slipped 3.7% after the social media giant said that it removed multiple groups and accounts that were started in Iran for "engaging in coordinated inauthentic behavior on Facebook and Instagram."
Meanwhile, Tesla (TSLA) was in focus after the Wall Street Journal reported that the car maker is facing a deepening criminal investigation over whether it misstated production numbers. FBI agents are looking into whether the company misstated information about production of its Model 3 sedans and mislead investors about its business going back to early 2017, according to the Journal.
MAJOR MOVERS: Among the noteworthy gainers was Mellanox (MLNX), which rose 14.5% after CNBC reported that the company had hired a financial adviser to help it seek a sale. Also higher was Expedia (EXPE), which gained 2.5% after reporting quarterly results.
Among the notable losers was Snap (SNAP), which fell 10.4% after the company reported quarterly results, noting that it assumes daily active users will decline sequentially in the fourth quarter. Also lower after reporting quarterly results and guidance was Western Digital (WDC), which declined 18.2%.
INDEXES: The Dow fell 296.24, or 1.19%, to 24,688.31, the Nasdaq lost 151.12, or 2.06%, to 7,167.21, and the S&P 500 declined 46.88, or 1.73%, to 2,658.69.
Alphabet
-27.61 (-2.51%)
Alphabet
-25.33 (-2.29%)
Amazon.com
-141.2 (-7.93%)
Intel
+1.31 (+2.96%)
Ticker changed to META
-5.41 (-3.58%)
Tesla
+15.53 (+4.93%)
Bought by NVDA
+10.67 (+14.69%)
Expedia
+2.93 (+2.49%)
Snap
-0.74 (-10.56%)
Western Digital
-9.835 (-18.21%)