S&P 500 Slips as Mega Slide in Meta Weighs

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S&P 500 Slips as Mega Slide in Meta Weighs
Credit: © Reuters.

By Yasin Ebrahim

Investing.com -- The S&P 500 slipped Thursday, as a Meta-led slump in big tech offset a jump in cyclical sectors including industrials and energy stocks.

The S&P 500 fell 0.38%, the Dow Jones Industrial Average gained 0.88% or 280 points, the Nasdaq was down 1.45%.

Meta Platforms (NASDAQ: META ) fell 24% after reporting third-quarter results that missed on the bottom line and were an “absolute train wreck,” Wedbush said in a note.

The results reflect the “pervasive digital advertising doldrums ahead for Zuckerberg & Co. as they make the risky and head scratching bet on the metaverse,” it added.

Meta’s results arrived just a day after Alphabet (NASDAQ: GOOGL ) and Microsoft (NASDAQ: MSFT ) reported underwhelming quarterly results. Apple (NASDAQ: AAPL ) and Amazon.com (NASDAQ: AMZN ) close the curtain on big tech earnings this week, with reports after market closes.

Caterpillar (NYSE: CAT ), however, provided plenty of optimism for investors after reporting better-than-expected quarterly results as price hikes and higher sales volume bolster the heavy equipment company’s growth.  

Honeywell International (NASDAQ: HON ), another industrial heavyweight, also delivered a beat on the bottom line, sending its shares more than 4% higher.

Boeing (NYSE: BA ) jumped more than 5%, recovering some losses from a day earlier, when the aircraft maker reported a bigger than expected loss.

McDonald’s Corporation (NYSE: MCD ), a major Dow component, was up nearly 3% underpinned by better-than-expected quarterly results amid rising customer traffic.

Energy stocks were driven more than 1% higher by rising oil prices, with Marathon Oil (NYSE: MRO ), Baker Hughes (NASDAQ: BKR ) and Valero Energy (NYSE: VLO ) leading to the upside.

On the economic front, meanwhile, the U.S. economy rebounded in the third quarter , growing at a 2.6% annualized rate, driven by a jump in exports though this is unlikely to persist given the stronger dollar , RBC said.

[W]ith the Fed hiking interest rates “aggressively,” RBC expects, GDP growth to “slow in Q4 and a recession to follow next year.”

Treasury yields, however, continued to their retreat from recent highs with the 10-year Treasury yield slipping below 4% as investors continue to bet that the Fed is closing in on a peak level in rates.

“Over the last six hiking cycles, bond yields have typically peaked a couple of months before the peak in the Fed funds rate itself,” Oxford Economics said in a recent note.

“We are therefore likely nearing a peak in yields, which we expect to be around 4% at the end of this year.”

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