November 21, 2024

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Stocks fell on track for sharp weekly losses for the S&P 500 and Nasdaq.

Stocks fell on track for sharp weekly losses for the S&P 500 and Nasdaq.

U.S. stocks fell on Friday as concerns about a global IT outage eased, with Wall Street looking to recover from a selloff that saw the Dow Jones Industrial Average snap a winning streak and technology stocks continue to slide.

The Dow Jones Industrial Average (^DJI) fell about 1%, after the blue-chip index dropped more than 1%. The S&P 500 (^GSPC) fell 0.7%, while the technology-dominated Nasdaq Composite (^IXIC) fell 0.8%.

Stocks are facing weekly losses after a handful of volatile sessions that saw tech shares fall, with artificial intelligence-focused chip stocks bearing the brunt. Investors are moving away from the heavyweight tech companies that fueled the recent rally toward smaller-cap companies, which some see as benefiting more from interest rate cuts.

In the early hours of the morning, investors were assessing the potential impact of an “unprecedented” failure of computer systems around the world that has grounded flights and hit banks, telecoms, media companies and more. But concerns were eased after CrowdStrike (CRWD) said there was a fix for the bug, a botched update that affected systems that relied on Microsoft (MSFT).

Shares of CrowdStrike fell about 20% as the outage spread, but had pared their losses to about 10% by afternoon trading. Shares of Microsoft, which has been working to resolve issues with its Azure cloud services, fell less than 1%.

Meanwhile, Republican presidential candidate Donald Trump used his nomination speech on Thursday to say he would “end the electric vehicle mandate on day one.” His comment comes as the market wakes up to the “Trump deal” — the consequences his policies would have on assets if the former president takes over the White House.

Shares of Tesla (TSLA) and other electric vehicle makers fell on Friday, along with the broader market.

He lives8 updates

  • Nvidia, Tesla lead losses on Nasdaq 100

    The Nasdaq 100 (^NDX) fell to a session low, down about 1% on Friday.

    Shares of electric car maker Tesla (TSLA) fell more than 4% while shares of chipmaker Nvidia (NVDA) fell more than 2%.

    Other semiconductors also fell, with Intel (INTC) down more than 5% and ASML (ASML) down 3%.

    The Nasdaq 100 was down about 1% by 1:00 p.m. ET on Friday. The Nasdaq 100 was down about 1% by 1:00 p.m. ET on Friday.

    The Nasdaq 100 was down about 1% by 1:00 p.m. ET on Friday.

  • Tesla shares fell 4% after Trump said he would end the “electric vehicle mandate.”

    Electric vehicle stocks came under pressure on Friday after former President Donald Trump criticized the Biden administration’s clean energy initiatives, referring to them as the “Green New Deal scam” during the Republican convention.

    “I will end the electric vehicle mandate on day one, thereby saving the American auto industry from complete annihilation, which is happening now, and saving American customers thousands and thousands of dollars per vehicle,” Trump said.

    The comments came despite an endorsement from Tesla (TSLA) CEO Elon Musk. Shares of the electric car giant fell 4% on Friday. Shares of Rivian (RIVN) and Lucid (LCID) also fell more than 1%.

    The Biden administration has no mandate for electric vehicles, but critics point to the EPA Car rules aim to cut carbon emissions It was introduced in March as a way to accelerate the widespread adoption of electric vehicles.

  • Technology, consumer discretionary goods lead declines

    Nearly all sectors of the S&P 500 were lower on Friday, with technology (XLK) and consumer discretionary (XLY) stocks leading the declines.

    The materials sector (XLB) also fell 1%. All three major indexes were in the red by 11:45 a.m. ET.

    The healthcare sector (XLV) was the only sector that rose slightly.

  • Netflix shares rise after quarterly results

    Netflix (NFLX) shares jumped the most since late January at the open before paring gains after the streaming giant posted better-than-expected quarterly results.

    Netflix memberships rose 34% quarter-over-quarter, due in part to the removal of the Basic plan in some markets.

    Netflix shares rose about 3% in early trading before giving up those gains.

  • CrowdStrike shares fall 10% after global IT outage

    CrowdStrike (CRWD) shares fell about 10% on Friday after an “unprecedented” computer systems failure that affected everything from airlines to hospitals.

    Early Friday, CrowdStrike CEO George Kurtz said a fix had been found for the glitch.

    “CrowdStrike is actively working with customers affected by a flaw found in a single content update for Windows hosts,” Kurtz wrote on social media platform X.

  • Stock markets little changed after global IT outage

    Stocks were little changed Friday as more details emerged about a global IT outage. Wall Street struggled to recover from a selloff that left all major averages in the red on Thursday.

    The Dow Jones Industrial Average (^DJI) fell 0.2% after falling more than 1% in the previous session.

    The S&P 500 (^GSPC) was hovering around the flat line, while the tech-heavy Nasdaq Composite (^IXIC) was down 0.2%.

    Investors have been pulling away from technology stocks this week as AI-focused chip stocks have fallen.

    Early this morning, investors were assessing the impact of an “unprecedented” failure of computer systems running CrowdStrike (CRWD) and Microsoft (MSFT)-based platforms.

    CrowdStrike CEO George Kurtz said the bug has been fixed. “CrowdStrike is actively working with customers affected by the bug, which was discovered in a single content update for Windows hosts,” he added.

  • Off the Phone with: American Express CEO

    American Express (AXP) CEO Stephen Squeri told me over the phone that the company will have another strong quarter by increasing its marketing budget by $800 million this year to $6 billion.

    He also said on whether he was thinking more cautiously about the second half of the year because of the elections:

    “If I had been more cautious, I wouldn’t have raised the guidance. I wouldn’t have increased the marketing and so on. I think we’re going to be consistent and I think that’s the key point here. The Fed is going to do what it’s probably going to do in September. It’s certainly not going to raise rates, it’s probably going to lower them, it’s probably going to lower them again before the end of the year. I think that helps you know what consumer confidence is. I think we’ll see what happens in the election in November, which I don’t think anybody has any idea about and the fact is this company has been around for 174 years with 30 presidents — we’ll be able to get through whatever we need to.”

  • In other news…

    In non-Trump RNC speech news, Hulk Hogan Ripping his shirt off at the event Moments ago, the CrowdStrike (CRWD) outage wreaked havoc on people’s lives (and its stock price) this morning…

    We had Netflix earnings last night, which are detailed here on Yahoo Finance’s Alexandra Canal. The stock was down a bit in premarket, with some concerns about Q3 subscriber guidance.

    Here’s what Jefferies technical analyst Brent Thiel had to say about it:

    We do not believe [guidance is a problem]“Given the massive growth over the past 12 months from password sharing (+39 million net adds), the slowdown in subscription growth should come as no surprise. It’s worth noting that the 8 million net adds in Q2 was the strongest quarter the company has reported except for Q2 2020. We expect subscription growth to accelerate in Q4 to 7.7 million net adds given the content slate (Squid Game S2 and NFL Games) and better seasonality in Q4 vs. Q3.”

    It has meaning to me.