By Amy Caren Daniel
(Reuters) – The Nasdaq Composite was on track to post its third straight session of more than 1 percent declines for the first time in three years, as disappointing forecasts from technology and internet companies sparked growth worries.
The technology index <.SPLRCT> tumbled 2.22 percent as underwhelming results from Facebook
The so-called FAANG group also dropped. Facebook slid 4.7 percent and Netflix
Apple “When you see the market leaders pull back it’s going to weigh on the entire market. We’re starting to see profit taking in a lot of these tech companies and investors are getting out of growth stocks,” said Shawn Cruz, manager, trader strategy at TD Ameritrade in Chicago. “Since Apple is the last FAANG stock we are going to hear from, I think we need a really good report or we are going to see weakness in the market.”
At 13:05 a.m. EDT the Dow Jones Industrial Average <.DJI> was down 139.87 points, or 0.55 percent, at 25,311.19, the S&P 500 <.SPX> was down 20.39 points, or 0.72 percent, at 2,798.43 and the Nasdaq Composite <.IXIC> was down 124.78 points, or 1.61 percent, at 7,612.64. Five of the 11 major S&P sectors were higher, led by the telecoms sector’s <.SPLRCL> 2.3 percent gain. The sector was boosted by AT&T’s Higher crude oil prices boosted the energy sector <.SPNY> up 0.72 percent. [O/R]
Caterpillar The S&P banks index <.SPXBK> was up 0.4 percent ahead of the Federal Reserve’s two-day meeting starting Tuesday. The Fed is expected to keep rates unchanged and reaffirm its outlook for further rate hikes. American Express Tyson Foods Advancing issues outnumbered decliners for a 1.02-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.38-to-1 ratio on the Nasdaq.
The S&P index recorded 13 new 52-week highs and two new lows, while the Nasdaq recorded 22 new highs and 77 new lows.
(Reporting by Amy Caren Daniel in Bengaluru; Editing by Shounak Dasgupta)