US Markets

US STOCKS-Wall St slips as chipmakers, Tesla weigh; Netflix jumps


Wall Street's main indexes edged lower in choppy trading on Thursday as a slump in chipmakers and Tesla outweighed a rise in tech-focused firms Netflix and Microsoft.

By Bansari Mayur Kamdar and Devik Jain

Jan 27 (Reuters) - Wall Street's main indexes edged lower in choppy trading on Thursday as a slump in chipmakers and Tesla outweighed a rise in tech-focused firms Netflix and Microsoft.

Intel Corp INTC.O tumbled 7% on a downbeat first-quarter earnings forecast also due to global supply chain disruptions.

The dismal outlook weighed on the broader segment, with the Philadelphia SE semiconductor index .SOX plunging 4.7%.

Electric-car maker TSLA.O crashed 8.5% after warning that supply chain issues will last throughout 2022, dragging down rivals Lucid Group LCID.O and Rivian Automative RIVN.O more than 9% each.

The S&P 500 flirted with a correction for the fourth straight session, while the CBOE volatility index - Wall Street's fear gauge - hovered near eight-week high of 32.47 points.

U.S. stocks had opened sharply higher on Thursday, a day after the Federal Reserve's hawkish comments triggered a late-session selloff.

The Fed indicated a rate hike in March and Chair Jerome Powell warned that inflation and supply problems are more persistent than previously thought, prompting traders to raise their bets to nearly five rate hikes by December.

Markets are expected to remain volatile in the near term, said Louis Navellier, chief investment officer for Navellier & Associates, adding "it may take another two or three months of this before we settle down and refocus but in the meantime, we have the good earnings to celebrate."

Netflix Inc NFLX.O jumped 7% as billionaire investor William Ackman amassed a new stake in the streaming service company worth more than $1 billion. AMZN.O, Microsoft MSFT.O gained 1% each, while iPhone maker Apple Inc AAPL.O fell ahead of its results after markets close.

The fourth-quarter earnings season is in full swing, with analysts expecting earnings from S&P 500 companies to grow 24.2% year-over-year, according to Refinitiv.

At 13:27 p.m., the Dow Jones Industrial Average .DJI fell 82.48 points, or 0.24% , to 34,085.61, the S&P 500 .SPX lost 26.80 points, or 0.62 %, to 4,323.13 and the Nasdaq Composite .IXIC lost 159.08 points, or 1.17 %, to 13,383.04.

The S&P 500 index would have to close 10% or more below its record closing high reached on Jan. 3 to confirm it entered correction territory. It ended 9.3% below that level on Wednesday.

Five of the 11 major S&P sectors advanced, led by gains in communication services .SPLRCL. The energy .SPNY sector hit a record high before slipping. O/R

The Russell 2000 index .RUT slipped 2%. The small-cap index is on track to confirming bear market territory and was last down 20% from its all-time closing peak on Nov 8.

Declining issues outnumbered advancers by a 2.6-to-1 ratio on the NYSE and by a 3.2-to-1 ratio on the Nasdaq.

The S&P 500 posted 17 new 52-week highs and 13 new lows while the Nasdaq recorded 18 new highs and 597 new lows.

(Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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