4:05pm: US stocks close in the red
US stocks continued to slip further into the red this afternoon as a range of factors, including the release of a mixed bag of earnings by key companies this week, weighed on the minds of investors.
At the close, the Dow was down 2.8% or 939 points to 32,977 points.
The S&P 500 sank 3.6% to 4,132 points while the tech-laded Nasdaq dipped 4.2% to 12,335 points.
12:05pm: US stocks continue to drop at noon
US stocks continued to slide at midday, reversing gains made on Thursday.
The Dow had dropped 455 points or 1.3% to reach 33,461 points.
The S&P 500 and Nasdaq also continued into the red, down 1.9% and 2.1% respectively.
Off the back of a disappointing earnings report released after the bell yesterday, Amazon shares were down about 12.5%.
IG chief market analyst Chris Beauchamp noted investor's nerves may be creeping in ahead of a meeting of the Fed next week.
“US stocks enjoyed such a strong day yesterday that some caution was inevitable, while the mixed picture following US tech earnings and the contraction in US GDP isn’t helping sentiment on Wall Street,” Beauchamp said.
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9.44am: US shares start in red
US shares started the final session of the week in the red reversing gains made Thursday as traders continued to fret about a myriad of issues.
The Dow Jones Industrial Average slipped 106 points at 33,810 in early deals in New York. The S&P 500 lost 39 points to stand at 4,248.
The tech laden Nasdaq composite index shed around 185 points at 12,686 putting it on pace to post its worst performing month since March 2020, when the pandemic took off.
All told, despite the volatility this week, US benchmarks are poised to end the week where they started.
"There has been a lot to digest this week, not least from companies themselves, with big tech the focus on the earnings front. We're continuing to see some decent reports, albeit with the odd blip along the way," noted Craig Erlam, senior market analyst at Forex group Oanda.
"There is a feeling that investors have had one eye on the Fed meeting next week which may be why we haven't seen a big sustainable move either way," he added.
"The dollar has pared gains today but it has been flying this week and it's hard to see a strong case for that to reverse in any significant way. I can't imagine the Fed is going to tone down its hawkish rhetoric next week."
Online retail titan Amazon is in focus Friday as its shares plunged 10.4% in New York after it reported a US$3.8 billion loss in the first quarter of 2022 and a the loss of its investment in electric car make r Rivian.
The company also issued weak revenue guidance for the second quarter.
6.30am: Nervousness seen continuing
US stocks were expected to open lower on Friday after worrying news after-hours Thursday from some key big techs, including Amazon and Apple, signaled that supply chain and price pressures may work to dent corporate earnings.
News of slowing economic growth in the world’s biggest economy added to the note of disappointment amid fears that the wider economy will suffer as the US embarks on a series of interest rate increases.
Futures for the Dow Jones Industrial Average shed 0.3% in pre-market trading, while those for the broader S&P 500 index were 0.6% lower and contracts for the tech-heavy Nasdaq 100 lost 0.9%.
Overall, markets appear to be in a fragile state given the number of factors adding to uncertainties.
“The petrified tail-chasing we have seen this week as equity markets swing from ‘we’re all doomed, get me out,’ to ‘I don’t want to miss the absolute bottom of the stock market, get me in’ is perhaps indicative of the state of confusion out there,” said Jeffrey Halley, senior market analyst, Asia Pacific, at OANDA.
“Markets are being buffeted by wars, inflation, slowdowns, overheating economies, supply chain disruptions, energy shortages and monetary policy moves etc,” he added.
Halley noted that Amazon’s earnings disappointed as it struggled with supply and price pressures while Apple’s spectacular results were dimmed by its warning that revenue may take a hit due to supply chain problems. In after-hours trading, Amazon shares were around 8% lower.
US first-quarter GDP data, released on Thursday, showed a 1.4% contraction, serving as a warning that economic growth is faltering ahead of the Federal Open Market Committee’s series of expected interest rate hikes.
“The key takeaway is that the data won’t detract the FOMC from a 0.50% rate hike next week,” said Halley, adding that “ ... we get actual US Personal Consumption and Expenditure, Core PCE Prices and the Employment Cost Index. All three have upside risks I believe, and robust data will be further ammunition for a hawkish FOMC next week.”
Tough COVID-19 measures in China and the ensuing lockdowns in the world's most populous country are also spooking markets and raising fears of supply chain constraints. The continuing war in Ukraine is also keeping investors on edge.
Elsewhere, oil prices were a little higher. Benchmark Brent crude futures were up 1.65% at $109.03 a barrel, while WTI was 1.33% higher at $106.76.a barrel.
"European oil import ban on Russia seems to be coming closer with oil prices rising overnight, with Germany and Hungary seemingly moving into that camp now," added Halley.
Contact the author at jon.hopkins@proactiveinvestors.com