Markets sink on tech earnings
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After a flurry of earnings from the mega tech companies late Thursday, investors reacted Friday by selling. Rising Covid cases in the U.S. and the election just a few days away also made markets anxious. The TSX and Dow each shed half-a-percentage point, while the S&P closed down 1.21% and Nasdaq plunged 2.45%. This October is the fourth consecutive year when U.S. stocks declined right before a presidential election. Quarterly reports were actually good, albeit not stellar, but investors choose to dwell on disappointing data.
Ad revenues lifted Facebook‘s earnings, but the numbers of American users has slipped during the Covid surge. The social media giant slid 6.31%. Amazon delivered stellar Q3 earnings, net sales and revenues, but still sank 5.45% on Friday. Amazon, down 5.45%. Similarly, Apple reported a strong quarter with revenues up, but disappointed on iPhone sales. Apple was the heaviest-traded stock on Wall Street and fell 5.6%. In contrast, Alphabet excited investors with its positive report, gaining 3.43%.
In Toronto, gold and oil names were the day’s winners. Meg Energy popped 7% and Imperial Oil jumped 6.36%. B2Gold rallied 3.8% and infrastructure play, Aecon, climbed 4.33%. In contrast, consumer staples, telcos and tech weighed on the TSX. Juggernaut Shopify actually fell 5.26% despite a Q3 earnings and revenue beat. The price of WTi slipped 1.3% while WCS slid over 3% as gold held steady. It was a down week for markets and, essentially, investors are jittery as they await the Nov. 3 U.S. vote.
🕵️♂️ Facebook -6.31%
📦 Amazon.com -5.45%
🍎 Apple -5.60%
🧮 Alphabet Inc. / Google +3.43%
🛢 MEG Energy Corp +7%
🛢 Imperial Oil +6.36%
🥇 B2Gold Corp. +3.8%
🧱 Aecon Group Inc +4.33%
🛍 Shopify Inc. -5.26%
