The Dow Jones Industrial Average wiped away a gain of more than 350 points and ended the day lower.
 | MON, JUL 18, 2022 | | | |
| DOW | | NAME | LAST | CHG | %CHG | | AAPL | 147.07 | -3.10 | -2.06% | | INTC | 38.71 | +0.09 | +0.23% | | MSFT | 254.25 | -2.47 | -0.96% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | AMD | 81.43 | +0.32 | +0.39% | | AAPL | 147.07 | -3.10 | -2.06% | | NVDA | 161.01 | +3.39 | +2.15% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AMD | 81.43 | +0.32 | +0.39% | | AAPL | 147.07 | -3.10 | -2.06% | | NVDA | 161.01 | +3.39 | +2.15% | |
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A stock rally on Monday evaporated by mid-afternoon following a Bloomberg report that said Apple will cut hiring and spending next year to deal with a possible downturn. At one point, the Dow Jones Industrial Average was up more than 350 points. Investors took the headline as a sign of the challenges companies will have to navigate as they deal with a stronger dollar and greater inflation. Tech firms such as Apple are contending with consumers spending more on services than on goods, as well as greater exposure to the China market that is dealing with Covid lockdowns.
"When Apple, a $2.4 trillion dollar company market cap-wise, rolls over, it's obviously going to have a pronounced impact on the headline indices and it just reminds people that companies are buckling down because of what they're seeing out there," said Peter Boockvar, chief investment officer at Bleakley Advisory Group. |
It was a very different picture earlier in the day after a strong earnings report from Goldman Sachs buoyed stocks. Shares of the investment bank jumped 5.6% at one point during the session and ended the day with a 2.5% gain. Investors approved of Goldman Sachs' results, even as CEO David Solomon said during the earnings call that inflation is "deeply entrenched" in the economy. Fixed income traders at Goldman Sachs generated about $700 million more in revenue than analysts expected, which helped the company deal with declines in investment banking revenue. Still, market participants warned investors to brace for more volatility ahead. "We're in somewhat of a trading pattern with volatility remaining high throughout the earning season," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "We'll get a better read on the health of the economy, the health of consumers and businesses, as seen through the lens of company management, as they report now en masse here over the next two to three weeks," Sandven added. |
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