Stock investors kicked into selling mode after the U.S. economy posted subpar growth in the first quarter.
The Dow Jones Industrial Average fell by triple digits, but clawed back from a 600+ point drop early afternoon. The S&P 500 and tech-heavy Nasdaq Composite also remained off just under 1%.
IBM, Caterpillar and Microsoft – which reports earnings after the close of trading – paced the Dow’s steep drop, while Merck, United Health and Walmart rose. Google parent Alphabet and Intel will also report results later today.
STOCK MARKET SELLOFF HAS FURTHER TO GO: JPMORGAN
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| IBM | INTERNATIONAL BUSINESS MACHINES CORP. | 168.66 | -15.35 | -8.34% |
| CAT | CATERPILLAR INC. | 339.86 | -23.62 | -6.50% |
| MSFT | MICROSOFT CORP. | 395.98 | -13.08 | -3.20% |
| MRK | MERCK & CO. INC. | 130.73 | +3.72 | +2.93% |
| UNH | UNITEDHEALTH GROUP INC. | 495.27 | +7.83 | +1.61% |
| WMT | WALMART INC. | 60.48 | +0.61 | +1.03% |
Mark Zuckerberg’s Meta sank after weaker-than-expected revenue coupled with rising spending on AI that could push expenses near $100 billion, the company disclosed on Wednesday. The stock is on pace for the worst percentage drop since October 27, 2022 when it fell over 24%, as tracked by Dow Jones Market Data Group.
ARTIFICIAL INTELLIGENCE: TOP STORIES
SUN VALLEY, IDAHO – JULY 08: CEO of Facebook Mark Zuckerberg walks to lunch following a session at the Allen & Company Sun Valley Conference on July 08, 2021 in Sun Valley, Idaho. After a year hiatus due to the COVID-19 pandemic, the world’s most ((Photo by Kevin Dietsch/Getty Images) / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| META | META PLATFORMS INC. | 438.04 | -55.46 | -11.24% |
The Dow’s drop pushes it further away from its record close of 39,807 reached in late March 2024.
BIDEN VOWS TO LET TRUMP’S TAX CUTS EXPIRE
Dow Jones Industrial Average
Gross domestic product for 2024, so far, rose by 1.6% according to the Commerce Department, falling short of the 2.4% expected by economists. Although this is the seventh straight quarter of growth, it trails the 3.4% rate for the fourth quarter of 2023.
NATIONAL DEBT: SEE THE BALLOONING TALLY
Gains in consumer spending were muted by “decreases in motor vehicles and parts as well as gasoline and other energy goods,” the Commerce Department said.
Gold, which is hovering near an all-time high, ticked higher and oil, which is trading around the $82 per barrel level, remained marginally lower.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GLD | SPDR GOLD SHARES TRUST – EUR ACC | 215.70 | +1.05 | +0.49% |
| USO | UNITED STATES OIL FUND L.P. | 79.65 | +0.03 | +0.04% |
In cryptocurrencies, Bitcoin was marginally lower, holding near the $63,000 level. So far this year it has gained over 50% outpacing the S&P’s 5% rise.
