U.S. stocks are falling after lackluster reports from Microsoft, Boeing
By Liz Moyer
Investing.com -- U.S. stocks are falling after lackluster results from Microsoft and Boeing stoked fears about a recession.
At 9:51 ET (14:51 GMT), the Dow Jones Industrial Average was down 239 points or 0.7%, while the S&P 500 was down 1.2% and the NASDAQ Composite was down 1.8%.
Microsoft Corporation (NASDAQ: MSFT ) shares fell 4.3% after warning about slowing revenue in its cloud services business. That also weighed on shares of other cloud providers including Amazon.com Inc (NASDAQ: AMZN ), which was down 3.9%.
Boeing Co (NYSE: BA ) stock was also falling 1.3% after a surprise fourth-quarter loss attributed mostly to production delays with its 777-9. The aviation giant is trying to avoid a repeat of the 737 MAX certification issue.
Wednesday’s growth stock weakness is in contrast to earlier this month, when the sector enjoyed a rally fueled by hopes that the Federal Reserve would ease back on its aggressive interest rate hikes.
The market is expecting the Fed to raise rates by a quarter of a percentage point when it meets next week.
Thursday will bring the latest report on initial jobless claims for the previous week. Analysts are expecting 205,000, which would be more than the previous week but still pointing to a tight labor market. A reading on fourth quarter gross domestic product is also due out in the morning on Thursday, with analysts forecasting a rise of 2.6% from the third quarter.
Oil was mixed. Crude Oil WTI Futures was flat at $80.13 a barrel, while Brent Oil Futures crude fell 0.1% at $86.05 a barrel. Gold Futures fell 0.2% to $1,930.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or