The Dow declined nearly 0.9% and the S&P 500 fell 0.4%, hurt by a sobering gross-domestic-product report. Tech shares posted the strongest performance in the S&P 500, gaining 0.5%. The tech-heavy
rose 0.4%. Tech stocks’ advance came ahead of a series of earnings reports from some of the largest companies in the U.S. stock market.
stock (FB) closed with gains of 0.5%, and rallied 5% in aftermarket trading after it beat Wall Street’s forecasts for its earnings per share and revenue.
(GOOGL) results also exceeded analysts’ expectations on its top and bottom lines. Its shares rose 2.3% in after-hours trading, on top of Thursday’s 1% gain. The company also said it has authorized up to $28 billion in buybacks of its class C shares.
The good news from the tech sector stood out after a flurry of negative economic headlines on Thursday. Quarterly data on GDP was slightly better than expected but showed the steepest decline on record and underlying consumer weakness. And jobless claims increased for a second consecutive week, with more than one million people filing for first-time claims in the week ended July 25.
Treasury yields sank to near-record lows following the bad economic news and assurances of continued easing from the Federal Reserve. The slide in interest rates weighed down shares of banks, which were the second-worst performers in the S&P 500 on Thursday. The sector closed 1.8% lower. The worst performer was the materials sector, which declined 2%.
Write to Alexandra Scaggs at [email protected]