Weighed by heavy losses in the technology sector following disappointing results from tech heavyweights Amazon ( AMZN ) and Alphabet (GOOG, GOOGL), Wall Street's major averages were in a freefall Friday, turning negative for the year. Although stocks were off their lows of the session, all eleven sectors of the S&P 500 remained underwater while all but two Dow components were driven lower.
The blue chip and S&P indices are on track to close the week lower for the third time in five weeks. The beaten down Nasdaq is set to close in the red for a fourth consecutive week, and at its lowest level since April.
Seeking refuge from risk, investors poured into safe havens, driving gold up to its highest level since July and dragging the yield on the 10-year Treasury note down by another 5 basis points to a three-week low.
Amid the deluge of corporate earnings after the close Thursday, including Chipotle Mexican Grill ( CMG ), Intel ( INTC ) and Mattel ( MAT ), Alphabet and Amazon torpedoed any chance for a continuation of Thursday's rally after the tech giants missed revenue expectations. Additionally, Amazon issued sales guidance that was below Street estimates, warning Q4 sales will be adversely affected by foreign exchange rates.
Stocks were sharply lower at the open although selling was briefly interrupted by better-than-expected economic growth. Gross domestic product grew at an annualized rate of 3.5% in Q3, slightly above 3.3% estimates.
This morning's other economic data was less encouraging as consumer sentiment deteriorated slightly in October largely due to the lack of wage growth. The final University of Michigan consumer sentiment index declined to 98.6 from the 99.0 flash reading.
The tech contagion spread across European bourses as well with Europe's major averages all sharply lower. Coupled with concerns over Italy's bloated budget and the UK's frustrated attempts to secure a favorable Brexit deal from the European Commission, Italy's FTSE-MIB was lower for a fifth week in a row and the Euro Stoxx 600 suffered its biggest monthly drop in seven years.
Crude oil was up $0.21 to $67.54 per barrel. Natural gas was down $0.04 to $3.16 per 1 million BTU. Gold was up $7.60 to $1,240.00 an ounce, while silver was up $0.13 to $14.76 an ounce. Copper was down $0.01 to $2.74 per pound.
Among energy ETFs, the United States Oil Fund was up 0.74% to $14.31 with the United States Natural Gas Fund down 1.01% to $26.00. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 1.92% to 19.36 while SPDR Gold Shares were up 0.65% to $117.15. The iShares Silver Trust was up 0.80% to $13.85.
Here's where the markets stand at mid-day:
NYSE Composite Index was down 128.15 points (-1.06%) to 11,990.37
Dow Jones Industrial Index was down 229.40 points (-0.92%) to 24,755.15
S&P 500 was down 41.73 points (-1.53%) to 2,664.34
Nasdaq Composite Index was down 130.68 points (-1.73%) to 7,191.42
FTSE 100 was down 64.54 points (-0.92%) to 6,939.56
DAX was down 106.50 points (-0.94%) to 11,200.62
CAC 40 was down 64.93 points (-1.29%) to 4,967.37
Nikkei 225 was down 84.13 points (-0.40%) to 21,184.60
Hang Seng Index was down 276.83 points (-1.11%) to 24,717.63
Shanghai China Composite Index was down 4.95 points (-0.19%) to 2,598.85
NYSE SECTOR INDICES
NYSE Energy Sector Index was down 7.77 points (-0.07%) to 10,847.07
NYSE Financial Sector Index was down 94.27 points (-1.23%) to 7,360.68
NYSE Healthcare Sector Index was down 184.14 points (-1.22%) to 15,263.37
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(+) INTC (+3.53%) Post better-than-expected Q3 results, raised FY18 guidance above street view
(-) SGYP (-66.86%) Will need to pay $38 mln to $51 mln in penalties if Trulance sales don't meet CRG minimums; says buyout offers were all too low to accept
(-) FLEX (-27.27%) Reported mixed Q2 results, issued soft FY19 guidance
(-) MHK (-21.27%) Missed Q3 EPS and revenue expectations
(-) ELLI (-18.04%) Q3 revenue missed expectations, issued weak Q4 guidance