Tech slide underscores unease
Better earnings equals higher share prices, or so goes the customary thinking. For technology stocks during this reporting season, it’s the exact opposite.
Companies from Alphabet to Microsoft announced quarterly results that beat analyst estimates by a combined 7.7 percent, more than any other industry group in the Standard & Poor’s 500-stock index. Yet their stocks posted the worst first-day reaction, falling an average 1.8 percent.
As tech megacaps from Facebook to Amazon.com and Google parent Alphabet reported earnings, the Nasdaq 100 index ended a three-week streak of gains. The gauge finished the five-day period with a 0.2 percent loss and dropped 0.7 percent from a recordhigh Editor’s note: Our weekly composite stock listing includes companies based in Washington or with a strong presence here. The rest of the table shows firms as ranked by market capitalization. And we’ve added year-to-date data because readers told us it would be useful. Wednesday.
“Look at some of the businesses, whether it’s Apple or Google, their revenue and profit growth is staggering,” said Marshall Front, who manages $800 million at Front Barnett Associates. “But over-concentration can lead to too much volatility on the downside.”
The S&P 500 slipped less than 0.1 percent over the five days. The Dow Jones industrial average gained 1.2 percent as Boeing, Verizon and Caterpillar saw robust results.
The treasury will sell $39 billion in threemonth bills and $33 billion in six-month bills Monday. They yielded 1.09 percent and 1.13 percent in when-issued trading. It also will sell four-week bills Tuesday.