The Dow Jones Industrial Average and other major U.S. stock indexes are Recovering from previous heavy losses The deficit remained large toward the end of Thursday.Quarterly earnings reports for technology giants such as Facebook parent meta and IBM disappointed investors. All eyes were on Microsoft and Google’s parent company Alphabet, which were scheduled to release their financial results after the closing bell. As of late Thursday afternoon, Microsoft and Alphabet shares were down 2.9% and 2%, respectively.
New data showed that Economic growth slowed sharply in the last quarter.of Department of Commerce GDP Report Growth was shown to be much weaker than expected. US gross domestic product (GDP) grew at a seasonally adjusted annual rate of 1.6% in the first quarter of this year. This was down from the strong growth of 4.1% in the second half of last year.
And since inflation is not going to increase right away, This was announced by the Bureau of Economic Analysis. On Thursday, it was announced that the “core” personal consumption expenditures (PCE) index, which excludes volatile food and energy categories, rose 3.7% year-on-year in the first quarter. This exceeded the expected 3.4% growth and was significantly higher than his 2% growth last quarter. This means the Fed may not cut rates as quickly as previously expected.
The Dow had fallen more than 600 points earlier in the day, but was still down 322 points, or 0.8%, at 38,138 late Thursday afternoon. The S&P 500 fell 0.3% and the Nasdaq fell 0.5%.
Meta stock sinks due to heavy loss of Metaverse
Meta stock plummets more than 10% Thursday afternoon, even though Facebook’s parent company announced better-than-expected quarterly revenue a day earlier.The causes of the loss appear to be: Huge losses in the company’s metaverseand CEO Mark Zuckerberg’s commitment to continue that spending.
Meta reported sales of $36.5 billion for the three months ended March 31, an increase of about 30% from a year earlier and above expectations of Wall Street analysts surveyed by FactSet. Ta. And profits more than doubled to $12 billion. Earnings per share were $4.71, beating expectations of $4.32.
But investors didn’t seem to mind the good fortune.Rather, they were concerned about Outlook for the second quarter is dull. The company issued a lower revenue outlook, expecting revenue for the three months ending June 31 to be between $36.5 billion and $39 billion.
IBM stock drops more than 8%
IBM announces first quarter financial results After market close on Wednesday. Although the company exceeded profit expectations, sales fell short. The company reported adjusted earnings per share of $1.68, compared to expectations of $1.60, and revenue of $14.46 billion, compared to estimates of $14.55 billion. The company is acquiring cloud software company HashiCorp for $6.4 billion in cash, paying $35 per share. IBM stock was down nearly 8% in the late afternoon.
Southwest Airlines has Boeing headaches
Southwest Airlines announced Thursday: Limit hiring and withdraw from some airports After posting a loss in the first quarter of 2024.
Dallas-based carrier lost $231 million The losses from January to March exceeded the $159 million loss recorded during the same period in 2023. The company’s loss was 36 cents per share, slightly less than its loss per share of 34 cents. Wall Street expected. Sales rose to $6.33 billion, but fell short of analysts’ expectations of $6.42 billion.
Southwest Airlines has also been affected by delays. boeingso while the production of new aircraft is slowing down; Focus on quality control issues. Even if the airline retires the other 35 jets, only 20 Boeing 737 Max 8 jets will be delivered to Southwest Airlines in 2024. Southwest Airlines received 46 new aircraft this year and planned to retire 49.
Southwest Airlines stock fell 7% in late afternoon.
Microsoft-backed Rubrik soars 20% on IPO day
Rubrik is a Microsoft-backed company that develops data management software. Listed on Thursday and The stock price immediately soared 20%..Unicorn companies under the ticker symbol RBRK The initial public offering price was $32 per share.. The stock price opened at $38.60 per share. The 10-year-old company sold 23.5 million shares ahead of its listing on the New York Stock Exchange, valuing it at $5.6 billion and raising $752 million.
Chipotle tells employees not to eat chicken at work
chipotle pepper Buying up chicken from employees To meet the rapidly increasing demand from customers.
“Due to the high demand for chicken in our restaurants and the continued success of our Chicken al Pastor, last week we announced that all employees across the company and in our restaurants were temporarily suspended from meals to maintain supplies. We asked them to choose a different protein option,” said Laurie Sharrow. Chipotle’s Chief Executive Officer and Chief Food Safety Officer said in a statement:
The announcement came just one day after the restaurant chain released its results. Sales were driven We recommend the braised beef barbacoa and al pastor chicken.
Chipotle stock rose more than 6% in late afternoon, hitting a new 52-week high.
Comcast stock falls despite higher profits
Comcast shares fell 6% Thursday afternoon as the media conglomerate lost more customers than expected from its streaming division in the first quarter. Adjusted earnings per share were $1.04, compared to analysts’ expectations of 99 cents. The company had revenue of $30.06 billion for the quarter, compared to the expected $29.81 billion.
Bitcoin falls below $64,000
Bitcoin falls below $64,000 It fell mid-morning Thursday, but recovered slightly by late afternoon as tech stocks continued to fall. This price drop came one week after Bitcoin’s “halving” event, where the reward for miners creating new Bitcoins was reduced from 6.25 Bitcoins to 3.125 Bitcoins.Top Cryptocurrency celebrated post-halving phase Early this week.
–Laura Bratton, Francisco Velasquez, and William Gavin contributed to this article.