Nasdaq Firmly Negative In Afternoon Trading, Dow Posting Modest Gain
After coming under pressure early in the session, technology stocks have seen further downside over the course of the trading day on Friday. The weakness in the sector continues to weigh on the tech-heavy Nasdaq in afternoon trading.
Currently, the Nasdaq is off its worst levels but remains down 131.84 points or 0.9 percent at 15,083.86. The S&P 500 is also down 9.64 points or 0.2 percent at 4,540.14, while the Dow is up 44.63 points or 0.1 percent at 35,647.71.
Disappointing earnings news from tech companies is contributing to the weakness in the sector, with shares of Intel (INTC) moving sharply lower on the day.
The drop by Intel comes after the semiconductor giant reported third quarter earnings that beat estimates but weaker than expected sales. The company also warned of lower profit margins over the next few years.
Snapchat parent Snap (SNAP) is also seeing substantial weakness after reporting mixed third quarter results and warning changes to Apple’s iOS privacy rules will lead to slower growth.
On the other hand, shares of American Express (AXP) has shown a strong move to the upside after the financial services giant reported third quarter results that exceeded expectations on both the top and bottom lines.
Overall trading activity is somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
Airline stocks have shown a significant move to the downside on the day, dragging the NYSE Arca Airline Index down by 1.8 percent to its lowest intraday level in two months.
The steep drop by Intel (INTC) is also contributing to considerable weakness among semiconductor stocks, as reflected by the 1 percent slump by the Philadelphia Semiconductor Index.
On the other hand, an increase by the price of gold is contributing to strength among gold stocks, with the NYSE Arca Gold Bugs Index jumping by 1.8 percent.
Banking stocks have also shown a notable move to the upside on the day, driving the KBW Bank Index up by 1 percent.
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance during trading on Friday. Japan’s Nikkei 225 Index rose by 0.3 percent, while China’s Shanghai Composite Index fell by 0.3 percent.
Meanwhile, the major European markets all moved to the upside on the day. While the French CAC 40 Index advanced by 0.7 percent, the German DAX Index climbed by 0.5 percent and the U.K.’s FTSE 100 Index edged up by 0.2 percent.
In the bond market, treasuries are regaining ground after trending lower over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.8 basis points at 1.647 percent.
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