Stocks were falling Friday after the biggest technology companies in the U.S. posted earnings that topped Wall Street expectations but issued tepid outlooks for the rest of 2020.
Shares of Apple (AAPL) – Get Report declined after the company reported weaker-than-expected iPhone sales and a revenue slide of 29% in China. Twitter (TWTR) – Get Report slumped after user growth missed estimates.
Investors also were grappling with record-setting new daily cases of the coronavirus in the U.S. – up to 90,000 – and uncertainty about a presidential election less than a week away.
The Dow Jones Industrial Average fell 348 points, or 1.31%, to 26,310, the S&P 500 was down 1.66% and the Nasdaq declined 2.61%. The S&P 500 was on track for its worst week since early September.
Apple posted stronger-than-expected fiscal fourth-quarter earnings but declined to provide guidance for the holiday quarter amid the ongoing uncertainty of the global coronavirus pandemic.
The stock was down 5.14% to $109.39 in trading Friday.
Apple’s iPhone revenue fell nearly 21% from a year earlier to $26.44 billion, below forecasts, thanks in part to the late launch of the iPhone 12. Revenue in China dropped 28.6% to $7.95 billion.
Twitter was falling sharply Friday, down 20.47%, after posting better-than-expected third-quarter earnings but adding only a million new daily users in the third quarter from the second quarter, well below Wall Street forecasts.
“None of Thursday’s tech earnings results were bad and some were spectacular, but the market is reacting negatively because when something is priced for better-than-perfection, it becomes pretty hard to live up to those expectations,” said David Bahnsen, chief investment officer of the Bahnsen Group in Newport Beach, Calif.
Bahnsen also said the presidential election was a “low-impact event for markets,” but added that if there is controversy surrounding the election “markets will have to slog through it all just as our country will.”