Nasdaq snaps three-day winning streak as Big Tech weighs down index; European markets close higher after hitting five-week high; Heineken shares fall 5%
The Nasdaq Composite and S&P 500 slid Wednesday, with both indexes snapping three-day winning streaks, as traders assessed disappointing earnings from tech giants Microsoft and Alphabet. The Nasdaq dropped 228.12 points, or 2.04%, to close at 10,970.99. The S&P 500 lost 0.74%, ending at 3,830.60. The 30-stock Dow Jones Industrial Average gained 2.37 points, roughly flat for the day and ending at 31,839.11.
Shares of Google-parent Alphabet dropped 9.1% after the tech giant missed expectations on the top and bottom lines. Alphabet also reported a decline in YouTube ad revenue, which spurred investors to deliberate the outlook for other tech companies that rely on ad spending.
Meanwhile, Microsoft declined 7.7% after the tech giant reported weaker-than-expected cloud revenue in its latest quarterly results, despite beating earnings and revenue estimates. The company also issued current-quarter revenue guidance that fell short of expectations.
In other earnings news, Harley-Davidson shares rose 12.6% after the motorcycle manufacturer reported beating expectations before the bell. Boeing lost about 8.8% after the jet maker reported a quarterly loss and missed revenue expectations.
The pan-European Stoxx 600 ended up 0.7%, having bounced on either side of the flatline throughout the trading session. Mining stocks jumped 2.8% to lead gains, while food and beverages stocks fell 0.6%. Shares of Dutch semiconductor firm ASMI dropped 8% by mid-afternoon after a weak earnings report and fourth-quarter outlook, while Heineken shares plunged more than 7% after the world’s second-largest brewer missed third-quarter beer sales expectations. At the top of the European blue chip index, Skanska shares climbed 5% after the Swedish construction company beat third-quarter profit estimates.
Source: CNBC, Investing.com