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Dow Ends Tough Week of Trading on Sure Note, Nasdaq Has Market's Worst Sell Off




Here are 3 hot things to know about stocks right now

  • Dow Jones Industrial Average fell Friday, but came from sharp downs from earlier in the session. The S & P 500 was decreasing, with the index leading for the seventh loss in eight days.
  • Amazon.com Inc. (AMZN) fell 7.8% following a slight revenue outlook and slower international growth from the online store giant.
  • Alfabet Inc. (GOOGL) was down 2.2% after Google's parents posted third-quarterly results that beat estimates, but the top line's growth came up with expectations.

Wall Street Overview

Shares were lower Friday, 26th. October, but recovered from sharper losses earlier in the session triggered by disappointing earnings and views from some of the world's largest companies.

Third quarter updates from tech giants Amazon.com Inc. (AMZN) and Google parent Alfabet Inc. (GOOGL) had deficit investor sentiment in markets worldwide as growth forecasts delayed in the face of increasing trade disputes, rising interest rates and a stronger US dollar. Alphabet stocks became higher at noon, but again moved into the red.

Dow Jones Industrial Average dropped 298 points, or 1[ads1].2% to 24.686; At the low of the day, the index changed 539 points. S & P went 1.74%, and Nasdaq fell 2.06%. Shares recovered on Thursday, October 25, as investors had hoped for strong corporate earnings. Dow jumped 401 points, or 1.63% to 24.984, S & P 500 gained 1.86%, and Nasdaq rose 2.95%.

Gross domestic product in the third quarter decreased to 3.5% annual rate, down from 4.2% in the second quarter. The economists asked of the FactSet projected GDP of 3.3% on a yearly basis.

Amazon occurred 7.8% on Friday after a slight revenue outlook and slower international growth from the online store giant overshadowed a strong earnings slump and continued momentum in operations.

Amazon achieved quarterly earnings of $ 5.75 per share and easily estimates $ 3.08 estimates, but revenues of $ 56.58 billion in the quarter were less than a consensus of $ 57.11 billion.

Amazon Web Services revenue increased by 46% to $ 6.68 billion, slightly weaker than $ 6.71 billion. Growth slowed slightly from the second quarter's 49%, but remained over 42% the year before.

For its seasonal big fourth quarter, Amazon ruled revenue of $ 66.5 billion to $ 72.5 billion and revenue from $ 2.1 billion to $ 3.6 billion, which is below consensus estimates of 73.79 billion dollars and 3.86 billion dollars.

"We believe that the lighter than Amazon's largest quarter (fourth quarter season) consensus guide is the main source of stock falling in the aftermarket," said Jim Cramer and the Action Alerts PLUS team, which holds Amazon in its portfolio. "Investors are likely to focus on the top line champion , but we think this is a wrong view of the company because it has changed over the last few quarters. "

The alphabet fell 2.2% after Google's parents had achieved the third quarter earnings of $ 13.06 per share on revenue of $ 33.7 billion, cutting down estimates of $ 10.41 per share but missing top line expectations of $ 34.04 billion.

Advertising continues to be Alphabet's largest cash cow, with ads revenue on Google platforms, which accounts for about 70% of net sales in recent years and grows about 20% annually. In the third quarter, Google's advertising revenue was $ 28.95 billion, with RUT h Porat who takes note of the revenue report, that the speed is led by mobile search and our many products that help billions of people every day. "

" All in all, despite the various performance in the quarter, there is no sugar coating, the release was ugly, "said Cramer and the Action Alerts PLUS team, which holds the alphabet in its portfolio.

Intel Corp. (INTC) rose 3.1% on Friday after the chip maker had a $ 1.40 per share revenue of $ 19.16 billion, topping analysts forecasts of $ 1.15 per share and revenue of $ 18.13 billion .

Intel raised its full-year income guidance to $ 71.2 billion from $ 69.5 billion and revenue expectations for the full year to $ 4.53 per share from $ 4.15.

Snap Inc. (SNAP) declined by 10 , 3% after the social media company had lowered the daily active users, although quarterly revenue and revenue struck Wall Street e stimulates.

Snap said that the daily active user count was 186 million, corresponding to expectations. It fell from 188 million in the previous quarter.

Chipotle M Exican Grill Inc. (CMG) increased by 3.4% after revenue growth in the third quarter, but the same growth in sales volume of 4.4% missed expectations.

Colgate-Palmolive Co., (CL) fell 6.7% after quarterly earnings of 72 cents per share in accordance with Wall Street estimates, but earnings were missing.

What is "Exit" fund and how do they fit a savvy investor portfolio? Click here to sign up for a free online video where TheStreet's Pension Expert Robert Powell and an all-star panel run down all you need to know.



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