Apple Pressures the Markets; Midterms On Deck
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With your money briefing, I'm Charlie Turner in New York for The Wall Street Journal. Stocks ended lower on Friday, putting a damper on a strong week for the markets, but they did finish off their session lows. The Dow Jones Industrials fell 109 points Friday to 25,270. The Nasdaq Composite dropped 77 points, more than 1%. The S&P 500 lost 17. For the week, the Dow, Nasdaq, and S&P each gained more than 2%. Joining us in our studio is Wall Street Journal markets reporter Jessica Menton. Jessica, after an awful October for stocks, you know, the NASDAQ down over 9%, this past week provided some relief for the markets, didn't it?
Absolutely. There was a bit of a rebound in the middle of the week. We did hear from a number of companies. We did get some still on the tech side at the beginning of the week. We saw Amazon over a two-day stretch wipe out $127 million from its market value, which was concerning at the middle of the week. But towards the middle, it just seemed as if Things were rebounding for a two, three day stretch. But then, of course, we heard from Apple after the bell on Thursday and they reported another. This was their fourth straight quarter of record profits and revenue, which sounds great. But unfortunately, their holiday guidance wasn't quite as strong as what investors were looking for. And that carried over into today's trading.
And so that's something that unfortunately weighed on stocks. Apple is in the three major indexes. So obviously, if Apple is lower. That's going to see broad effects across the market. And that's definitely something that investors are going to keep their eye on come Monday.
I thought, here we go again, another market sell-off. And, you know, it struck me that the guidance that they issued, the numbers themselves seem pretty strong. But I guess since they didn't really surpass analysts' previous projections, that was enough.
Exactly. It's almost as if these big tech companies, when you think of especially the FANG stocks, a lot of the analysts keep saying they're priced for perfection. So if they don't exactly meet everything, whether it's earnings, revenue, and then especially that outlook, in times of a crucial holiday quarter, you're going to see those movements, unfortunately, on their stock prices.
Do investors think the good times are over for corporate earnings? I mean, they've been strong, but they've probably hit their peak.
That's definitely the million-dollar question a lot of people are asking, especially when you take a step back and look at this bull market. Now, in just over nine years, how long can the good times continue? Now, again, we are in the holiday quarter, and I think... that depending on what happens, especially when you think of consumer spending, that's over two thirds of the economy. Depending on what can happen with that, especially when you look at the jobs numbers, it seems like the economy is on great footing. So if maybe we haven't heard yet from the retailers. Right. And those are coming up in a couple of weeks and they're going to put out their outlooks as far as what they're thinking, engaging for this current quarter.
And I think potentially what we hear from them that can turn things around.
It struck me that investors in the end sort of ignored the good jobs news and also maybe some hopeful signs on U.S.-China talks.
Absolutely. Before the bell, we saw these great numbers coming from the jobs report, especially when you look at the wage figures, looking at some of the best pay raises in almost a decade. And then when you think of this sort of looming narrative over the markets especially in october when you think of china trade tensions how that can affect markets and everything when you think of them de-escalating you would think you know the markets would be pretty stable going into this but it looks as if you know technology again looking at apple it's in all the major indexes and that unfortunately was not enough but we'll have to wait and see you know going forward what's going to happen next week
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