Microsoft surprise helps boost U.S. stocks after long losing streak

Roman Schwartz
October 28, 2018

Texas Instruments dropped 8.2 percent, helping pull the Philadelphia Semiconductor index down 6.6 percent in its biggest daily percentage drop since October 2014.

The Dow tumbled more than 600 points on Wednesday, and the Nasdaq lost 4%, its worst one-day percentage drop in more than seven years. It was down as much as 539 earlier. Bond prices rose, sending yields lower as traders sought safe-haven investments.

Charts for the entire region were awash with the red that indicates losses, but the declines were mostly in the 2 percent to 3 percent range.

The Cboe Volatility Index, the most widely followed gauge of expected near-term gyrations for the S&P 500, finished little changed at 24.16.

Tech will be tested again later on Thursday: Alphabet, Amazon (AMZN), Snap (SNAP) and Intel (INTC) all will post their quarterly financial report after the bell.

Another factor weighing on companies whose stocks have sunk is what many see as the potential damage from a prolonged USA trade war with China, either because of retaliatory tariffs imposed by Beijing or because of weakening Chinese demand.

Japan's Nikkei 225 index swooned 3.7 percent and Hong Kong's Hang Seng index ended 1 percent lower.

The Dow was up 471 points, or 1.9 percent, to 25,050.

AUSTRALIAN shares are set to drop for a fifth straight session following heavy overnight losses on Wall Street, as weak forecasts from chipmakers added to continued fears over the impact of tariffs and China's slowdown. Within that group around 180 stocks are now in bear market territory, with their shares having lost more than 20 percent of their value since hitting their 52-week high. That helped send the S&P 500 to a new all-time high in September, erasing the losses from its "correction" in February.

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The S&P 500 index fell 16 points, or 0.6 percent, to 2,724. It was up 512 minutes earlier.

After the first 50 minutes of trade the ASX200 was down 2.1 per cent to 5709.4 points.

Stocks are turning broadly lower in midday trading on Wall Street, extending a losing streak for the S&P 500 index to a sixth day.

Market favorites like technology and consumer-focused companies have borne the brunt of the sell-off.

Netflix stock dropped more than 9 percent, Facebook fell 4 percent, Amazon slid 5 percent and Apple was down 3 percent.

With both Google and Amazon missing analysts' estimates in their Q3 earnings reports, both the S&P 500 Technology and Communication Services came under pressure on Friday to end the day 1.9% and 2.4%, respectively.

Colgate-Palmolive sank 5.3 percent after its results fell short.

Twitter soared 15.7 percent to $31.87 and electric vehicle maker Tesla jumped 8.7 percent to $313.62 after releasing their quarterly reports, while video game maker Take-Two vaulted 9.1 percent to $121.05 after strong reviews for its latest game, "Red Dead Redemption 2".

USA stocks finished a punishing session sharply lower on Wednesday (Oct 24), with major indices sinking more than two percent and the Dow and S&P 500 tumbling and wiping out all the 2018 gains.

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