U.S. stocks declined broadly in early trading Friday, erasing the market’s gains from a strong rally a day earlier and putting major indexes back into the red for the year.
Amazon, Alphabet, Mattel and other big companies fell sharply after turning in disappointing quarterly results. Technology and consumer-focused companies accounted for much of the slide. Bond prices rose, sending yields lower, as investors continued to seek less risky assets.
KEEPING SCORE: The S&P 500 index slid 56 points, or 2.1 percent, to 2,648 as of . The Dow Jones Industrial Average dropped 402 points, or 1.6 percent, to 24,581. The Nasdaq composite lost 205 points, or 2.8 percent, to 7,113. The Russell 2000 index of smaller-company stocks gave up 19 points, or 1.3 percent, to 1,480. The Dow and S&P 500 are now down for the year again.
REVENUE MISSES: Amazon and Google parent company Alphabet slumped after both companies reported quarterly reported revenue figures that fell short of analysts’ estimates. Amazon sank 8.5 percent to $1,632.79 while Alphabet slid 4.9 percent to $1,047.62.
TEARS IN TOYLAND: Mattel dropped 3.7 percent to $13.33 as investors reacted to the toy maker’s latest quarterly snapshot.
CHIPPER RESULTS: Chipmaker Intel was a bright spot, gaining 2.6 percent to $45.48 after reporting strong quarterly results.
ENCOURAGING ESTIMATE: The Commerce Department said the U.S. economy’s gross domestic product, a measure of total output of goods and services, grew at a robust annual rate of 3.5 percent in the July-September quarter. That’s higher than what many economists had been projecting and followed an even stronger 4.2 percent rate of growth in the second quarter. The two quarters marked the strongest consecutive quarters of growth since 2014.
BOND YIELDS: U.S. bond prices rose. The yield on the 10-year Treasury note fell to 3.08 percent from 3.13 percent late Thursday.
ENERGY: Benchmark U.S. crude fell 0.7 percent to $66.88 a barrel in New York. Brent crude, the benchmark for international oil prices, dropped 0.5 percent to $76.52 a barrel in London.
The slide in oil prices helped pull energy sector stocks lower. National Oilwell Varco lost 7.8 percent to $34.12.
CURRENCIES: The dollar fell to 111.99 yen from 112.61 yen on Thursday. The euro fell to $1.1353 from $1.1359.
MARKETS OVERSEAS: Major European stock indexes fell. Germany’s DAX slipped 1.1 percent, while France’s CAC 40 dropped 1.8 percent. Britain’s FTSE 100 slid 1.3 percent. In Asia, Japan’s benchmark Nikkei 225 lost 0.4 percent, while South Korea’s Kospi dropped 1.8 percent. Australia’s S&P/ASX 200 was flat. Hong Kong’s Hang Seng sank 1.1 percent.