The stock market sank to session lows in afternoon trading Friday as index losses topped 2%.
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The S&P 500 plunged 2.1% and undercut Thursday’s lows, essentially wiping out almost all of that day’s 2.5% rally. The Nasdaq composite slid 2.4%, though it is holding above Thursday’s low.
The Dow Jones Industrial Average was down 1.5% and also within the prior day’s price range. The small-cap Russell 2000 fell 1.4%.
Volume fell on the NYSE and Nasdaq compared with the same time on Thursday. Declining stocks outnumbered advancers by more than 3-1 on the NYSE and about 9-5 on the Nasdaq.
Another Megacap Tech Weighs On Nasdaq
Amazon.com (AMZN) was a major weight on the indexes Friday, the worst performer in the S&P 500 and Nasdaq 100. The online retailer missed first-quarter earnings and sales estimates, and management gave a weak outlook late Thursday.
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Last Update: 1:26 PM ET 4/29/2022
The stock plunged 13% and undercut a consolidation that had been forming since July.
Amazon stock, one of the FAANG firms, is on pace to beat its previous record single-day loss on Oct. 26, 2011, when it fell 12.7%, according to Dow Jones Market Data. Its loss of more than 22% in April makes it the worst month since November 2008, when it fell 25.4%.
Apple, AbbVie Also Fall On Earnings
Apple (AAPL) also fell following its earnings report, but the stock responded comparatively better. Shares reversed lower 2% but are holding above the 200-day moving average. The relative strength line is near highs.
The drugmaker, a megacap firm with a market value exceeding $250 billion, is on pace for its worst single-day loss since March 16, 2020, when it fell 13%, according to Dow Jones Market Data.
AbbVie cut its 2022 forecast and gave a mixed first-quarter report.
Merck (MRK), another major pharmaceutical, topped the 89.58 buy point of a cup-with-handle base early today. But market pressure brought the stock back into the base. Merck was down slightly in afternoon trading, a day after shares rallied on positive first-quarter results.
IBD 50 Index Outperforms Stock Market
Real estate investment trusts also hurt the IBD 50. Public Storage (PSA) slid to its 50-day line and is at risk of erasing all gains from the 380.52 buy point. Extra Space Storage (EXR) broke below the 50-day line and is getting close to the 7%-8% sell signal from its 211.15 buy point.
Terreno Realty (TRNO) also slid below the 50-day line but continues to work on a cup with handle.
But Carlisle (CSL) gapped up to new highs Friday after the company beat profit expectations. The manufacturing company’s earnings growth accelerated with a 209% jump in first-quarter EPS. The stock is rising from support at the 10-week moving average.
Stock Market Watches Mixed Economic Data
In economic reports, U.S. consumer spending rose 1.1% in March and personal incomes rose 0.5%, both above economists’ forecasts.
Bill Adams, chief economist for Comerica Bank, said in an analysis that after accounting for inflation, personal income fell in March, while personal expenditures edged up only modestly. Core PCE inflation slowed in March, he added, “but different measures are telling different stories.”
The price deflator for personal consumption expenditures, the measure of inflation targeted by the Fed, rose 0.9% in March from 0.5% in February. The major drivers were an 11.8% surge in energy goods and services, and a 1.4% rise in food prices.
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