US stocks drop as gloomy earnings reports from Big Tech and others roll in
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- US stocks fell Wednesday as investors assess more earnings reports from Corporate America.
- Microsoft cut revenue guidance and Boeing posted a quarterly loss.
- Tesla's earnings are on tap later Wednesday.
US stocks fell Wednesday as investors received disappointing financial updates from Boeing and Microsoft, underscoring concerns about how companies are faring through macroeconomic headwinds and supply chain snarls.
All three of Wall Street's major equity indexes were in the red, led by losses in the tech-concentrated Nasdaq Composite.
Microsoft shares were under pressure after the company cut its fiscal third-quarter revenue outlook in part as growth in its cloud business slows. Boeing fell after the aircraft maker posted a more than $600 million loss for the fourth quarter, hurt by supply chain challenges.
Big Tech shares will remain in focus with Tesla's fourth-quarter results due after Wednesday's closing bell. Investors will watch what the EV maker says about demand and recent price cuts.
Here's where US indexes stood at the 9:30 a.m. opening bell on Wednesday:
- S&P 500: 3,970.79, 1.15%
- Dow Jones Industrial Average: 33,469.64, down 0.78% (264.32 points)
- Nasdaq Composite: 11,126.87, down 1.83%
Here's what else is happening today:
- The stock market is underestimating sticky cost inflation that's denting company profits, Morgan Stanley's Mike Wilson said.
- Bankrupt crypto lender BlockFi accidentally revealed it had more than $1.2 billion in assets tied up with FTX.
- US housing prices will stop crashing within six months, said Goldman Sachs.
In commodities, bonds, and crypto:
- West Texas Intermediate crude shed 1 cent at $80.12 per barrel. Brent crude, the international benchmark, slipped 3 cents to $86.10.
- Gold slipped 0.6% to $1,924.10 per ounce.
- The 10-year Treasury yield fell 7 basis points to 3.44%.
- Bitcoin lost 1.4% to trade at $22,583.11.