The Dow Jones Industrial Average fell as Facebook parent Meta Platforms dragged the stock market lower. Amazon.com and Ford fell before posting earnings late. Tesla stood out with a show of strength amid the negative action.
Other social media plays were also crushed. Snap, Pinterest and Twitter were all sharply lower.
Volatility spiked, with the Cboe Volatility Index, or VIX, closing up 10.2%. Volume was lower on both the New York Stock Exchange and the Nasdaq, which is preferable when prices are falling.
Meanwhile, the yield on the benchmark 10-year Treasury note climbed about seven basis points to 1.84%. Oil also popped, with West Texas Intermediate crude up more than 2%.
Nasdaq Dives As Growth Stocks Get Pressured
The Nasdaq was getting hammered, closing down 3.7%. Outside of Meta Platforms and Amazon, MercadoLibre was the worst performer. It fell 7.7%.
The S&P 500 was also under pressure, dipping 2.4%. Water technology provider Xylem was one of the worst performers here, falling 12%.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 35110.34 | -518.99 | -1.46 |
| S&P 500 | (0S&P5) | 4477.30 | -112.08 | -2.44 |
| Nasdaq | (0NDQC ) | 13878.82 | -538.73 | -3.74 |
| Russell 2000 | 197.48 | -3.86 | -1.92 | |
| IBD 50 | 37.91 | -0.91 | -2.34 | |
Last Update: 4:06 PM ET 2/3/2022 |
||||
The S&P sectors were nearly all negative. Consumer staples was the only area to finish in the green. Consumer discretionary, communication services and technology were the worst performers.
Small caps were also getting mauled by the bears, with the Russell 2000 falling 1.9%.
Growth stocks were also spanked. The Innovator IBD 50 ETF, a bellwether for growth stocks, fell 2.3%.
Dow Jones Today: Index Dips As Microsoft Stock, Honeywell Lag
The Dow Jones Industrial Average fared better than the other major indexes. But it still lost more than 500 points as it closed down 1.5%.
Microsoft stock was one of the worst performers, dipping 3.8%. It remains above its 200-day moving average for now.
But it was Honeywell that was the worst performer on the Dow Jones today. It fell nearly 7.6% to a 52-week low on disappointing results.
Facebook Stock Plummets; Social Media Plays Struggle
Facebook parent Meta Platforms turned in its worst-ever session. It ended the day down 26.4% as it closed around session lows.
The relative strength line took a vertical plunge, while the stock is now about 27% below the key 50-day moving average. It was hammered after Q4 results missed Wall Street views. Even worse, the firm handed out disappointing guidance.
Facebook stock is now at its lowest point since 2020. Due to its status as the sixth largest company in the Nasdaq and S&P 500, it had an outsize effect on the performance of the major indexes.
The firm blamed privacy changes to Apple's iOS for affecting ad-targeting, which makes online ads less effective. It also said inflation and supply chain issues are hitting advertiser budgets.
Facebook stock was hit by a slew of downgrades, including from BMO and Raymond James. Slowing user growth and rising competition from the likes of TikTok are seen as issues for the company.
Other social media stocks were also getting pummeled.
Snap fell 23.6%. It is a direct competitor with the popular TikTok platform.
Pinterest, which reports after the close, fell more than 10%. Twitter was faring a bit better as it ended the session down 5.6%.
Amazon Earnings Beat; Stock Rallies Late
Amazon posted earnings after the close. The stock finished the day down 7.8% but was rallying after hours.
Earnings are due after the close. Investors will be watching how the e-commerce company is handling worker shortages and strained supply chains.
Wall Street expects EPS of $3.72 per share. Sales are seen jumping 10% to $137.7 billion. Earnings came in at $27.75, while revenue was $137.6 billion.
Shares have declined significantly the past few months. Shares ended the day rooted below their 50-day and 200-day lines.
UBS reiterated its buy rating on Amazon heading into earnings. However it is taking "a more conservative stance" on near-term earnings before interest and taxes due to cost pressures.
Ford Earnings Mixed; Tesla Stock Gains
Auto giant Ford fell in extended trading after posting results after the close.
Analysts expect Ford to earn 45 cents per share in adjusted earnings and $35.5 billion in revenue, according to Refinitiv estimates.
The firm posted earnings of 26 cents per share on revenue of $35.3 billion.
It ended the day down 3.6% but was in positive territory for the week. It has surged nearly 80% over the past 12 months amid enthusiasm over its transition to EVs.
Ford stock has been trading tightly below its 50-day moving average.
Meanwhile Tesla, a member of the prestigious Leaderboard list of growth stocks, was shining. It was in positive territory for much of the session, and closed the day down 1.6%.
Please follow Michael Larkin on Twitter at @IBD_MLarkin for more on growth stocks and analysis.
