Dow Posts New Record High Despite Facebook’s $50 Billion Stock Plunge

Important facts
The Dow is up 74 points. Friday’s 0.2% was 35,677, above the record closing price of 35,625 on Aug. 16, and this year’s increase of around 18%.

American Express’s main share in the index rose more than 5% after the credit card giant reported unexpectedly high sales of $10.9 billion in the third quarter thanks to record high personal consumption. This is aided by continued recovery from travel and entertainment. Transaction.

The S&P 500, which closed at a record high on Thursday, was down about 0.1% on disappointing Snap earnings, which are down 27% at Apple’s discretion, with shares dropping 5% on social media like Facebook. I took 4544 points. The change resulted in worse-than-expected earnings.

The decline in Facebook’s stock erased about $49 billion in market value, which is $915 billion a day, and Snap’s market value fell by about $31 billion to $87 billion, which is a 5 percent drop on Twitter. It lost about $3 billion in value.

Given the tech weakness on Friday, the Nasdaq was down about 0.8 percent to 15,090 points, with the high-tech index down about 2 percent from its highest level since September.

Basic background
According to Refinitiv, about 84% of S&P 500 companies that posted earnings above analyst expectations in the third quarter have recovered significantly despite rising costs. Stock prices rebounded that month. Lindsay Bell, chief investment strategist at Ally Invest, said inflation concerns had temporarily calmed markets over the past few months, but not enough to discourage investors, on both transport and consumer discretion. He cited the stock recovery as a sign of “supply chain concerns”. Restrictions are starting to fade. ”

What to watch out for?
Many of the big tech companies will report earnings next week, with parent Google Alphabet, Microsoft and Twitter introduced on Tuesday afternoon, followed by Amazon and Apple on Thursday.

As a result, shares of Facebook, Twitter, and Google fell even though the market was near record highs (Forbes)

S&P 500 Hits Record Third Quarter Results (Forbes)