Published Friday, Oct. 30, 2020 | 6:45 a.m.
Updated 10 hours, 36 minutes ago
NEW YORK (AP) — Weakness in several Big Tech companies including Apple and Facebook sent stock prices somewhat lower in early trading on Wall Street Friday, keeping the S&P 500 on track for its second weekly loss in a row. The benchmark index was down 0.3% in the early going Friday, and the tech-heavy Nasdaq was down even more, 0.7%. Even though Apple and other tech giants reported results late Thursday that beat analysts’ estimates, downbeat forecasts and other uncertainties led investors to punish several of the stocks, with the exception of Google’s parent company, Alphabet. Twitter plunged more than 15%. Exxon Mobil fell after reporting a drop in revenue.
THIS IS A BREAKING NEWS UPDATE: AP’s earlier story appears below.
Global stocks and U.S. futures sank Friday as investors looked ahead to next week’s American presidential election and weighed the chances of economic aid from Washington and Europe.
London and Frankfurt opened lower, while Tokyo, Hong Kong and Seoul all declined. Shanghai closed lower after swinging between gains and losses.
Investors have been dismayed by a lack of progress in talks between the White House and Congress on new U.S. stimulus. Hopes for action ahead of Tuesday’s election and potential wrangling over the outcome have diminished.
“The market is still in search of that elusive stimulus lifeline in this mishmash of pre-election de-risking,” Stephen Innes of Axi said in a report.
In early trading, the FTSE 100 in London lost 0.7% to 5,542.62 and Frankfurt’s DAX was 1.1% lower at 11,470.85. The CAC 40 in France retreated 0.9% to 4,528.95.
On Wall Street, futures for the S&P 500 index and the Dow Jones Industrial Average were down 1.8%.
In Asia, the Nikkei 225 in Tokyo fell 1.5% to 22,977.13 and the Hang Seng in Hong Kong lost 2.1% to 24,073.72.
The Shanghai Composite Index sank 1.5% to 3,224.53. It swung between gains and losses after the ruling Communist Party said Thursday it wants to make a China a self-reliant “technology power” amid a feud with Washington that is hampering access to high-tech components.
The Kospi in Seoul retreated 2.6% to 2,267.15 and Sydney’s S&P-ASX 200 was 0.6% lower at 5,927.60.
India’s Sensex lost 0.9% to 39,404.79. New Zealand, Singapore and Bangkok retreated.
On Thursday, the S&P 500 rose 1.2%, helped by a rebound for tech stocks as the market steadied after its worst drop in four months.
The index fell 3.5% on Wednesday on worries an upsurge in coronavirus infections could drag down the economy again.
Traders welcomed data that showed the number of U.S. workers applying for unemployment benefits eased last week to 751,000. That was down from the previous week’s 791,000 and better than economists expected.
The Dow Jones Industrial Average gained 0.5% while the tech-heavy Nasdaq composite climbed 1.6%.
In Washington, House Speaker Nancy Pelosi sent a letter to Treasury Secretary Steven Mnuchin listing topics in their stimulus negotiations on which she is awaiting a reply. They include benefits for laid-off workers and measures on coronavirus testing.
Also Thursday, the head of the European Central Bank said there’s “little doubt” it will deliver more stimulus in December.
In China, the ruling party said Thursday its next five-year development plan starting next year will emphasize self-reliance in technology.
The party gave no details but aid to technology developers could help Chinese makers of smartphones and other products that face possible difficulty in obtaining U.S. components after the Trump administration imposed export restrictions in a fight over security, spying and Beijing’s development plans.
Coronavirus case numbers are rising in the United States and Europe, increasing worries that restrictions on business might be re-imposed. Retailers worry customers might stay away even if sweeping lockdowns don’t come back.
In energy markets, benchmark U.S. crude lost 31 cents to $35.86 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.22 on Thursday to $36.17. Brent crude, the price standard for international oils, declined 39 cents to $37.87 per barrel in London. It lost $1.47 the previous session to $37.65.
The dollar declined to 104.33 yen from Thursday’s 104.67 yen. The euro advanced to $1.1681 from $1.1671.