Published: Sat, January 30, 2021
Economy | By

Big technology companies lead United States stock indexes sharply lower

Big technology companies lead United States stock indexes sharply lower

The CBOE volatility index, Wall Street's fear gauge edged higher for the third straight day.

Traders were also focused on the eye-popping surge in GameStop, a money-losing video game seller that became the focus of a battle between small investors bidding it higher and big hedge funds betting it would fall. AP's previous story follows below.

The Dow Jones Industrial Average.DJI fell 22.96 points, or 0.07%, to 30,937.04, the S&P 500.SPX lost 5.74 points, or 0.15%, to 3,849.62 and the Nasdaq Composite.IXIC dropped 9.93 points, or 0.07%, to 13,626.07.

USA stocks rose in choppy trading on Tuesday, with the S&P 500 scaling a new peak, after a batch of upbeat earnings updates including Johnson & Johnson's strong profit forecast and 3M's quarterly profit beat.

The Dow is down 693.81 points, or 2.2%. The sale was large, although large Tech companies such as Facebook, Netflix and parent company Google led the decline.

Among other stocks, Comcast Corp added 6.9% after it reported better-than-expected fourth-quarter revenue, as broadband demand continued to offset pandemic-related weakness in its theme park and filmed entertainment businesses.

Focus later in the day will be on the Federal Reserve's statement after a two-day policy meeting.

But analysts also continue to eye prospects for additional fiscal stimulus as President Joe Biden pushes for a $1.9 trillion package, though it faces hard negotiations in a Senate where Democrats have a slim majority. The slim majority of Democrats in the Senate have raised doubts about how quickly more help could arrive and whether such a package will end up being cut back by cautious lawmakers.

Major equity indexes in the United States started the second day of the week in the positive territory as investors await quarterly earnings figures.

"Not all of those things are playing out in a clear way", said Sylvia Jablonski, chief investment officer of Defiance ETFs.

"Investors are digesting earnings that came out overnight and this morning, and taking a look at the fundamentals of what's going on in specific companies, as well as any outlook that can be provided to try to justify valuations", said Brian Vendig, managing executive at MJP Wealth Advisors in Westport, Connecticut. This is the busiest week so far in the quarterly earnings season for USA companies.

Other companies set to report their quarterly results this week include McDonald's Corp. and Starbucks well as the major airlines, among others. As a whole, analysts expect S&P 500 companies to say their fourth-quarter profit fell 5% from a year earlier.

GameStop's stock more than doubled as the company remains caught in a tug-of-war between Wall Street institutions and an activist community of online investors.

A pair of professional investment firms that placed big bets that GameStop's stock would crash have largely abandoned their positions.

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