BUSINESS US stocks retreat after tech earnings, jobs data

BUSINESS

US stocks retreat after tech earnings, jobs data

AFP

23:19, February 03, 2023

Wall Street stocks fell early Friday following disappointing earnings from tech giants as the market digested the implications of a strong US jobs report for monetary policy.

Shares of Apple, Amazon and Google parent Alphabet fell following earnings releases late Thursday that underscored the downcast outlook for the sector after torrid growth early in the Covid-19 pandemic.

The Labor Department reported the US economy added 517,000 jobs in December, more than twice the analyst estimate with strong broad-based growth, including in hospitality.

The report comes two days after the Federal Reserve enacted a smaller interest rate increase and acknowledged progress in countering inflation.

"The remarkable strength of the report could have the Fed questioning its own conviction about pausing rates soon," said Briefing.com analyst Patrick O'Hare.

About 10 minutes into trading, the Dow Jones Industrial Average was down 0.3 percent at 33,962.10.

The broad-based S&P 500 declined 0.8 percent to 4,147.61, while the tech-rich Nasdaq Composite Index dropped 1.3 percent to 12,046.77.

Among individual companies, Ford plunged 10.1 percent after reporting disappointing fourth-quarter earnings. The automaker blamed the results on poor execution that led to higher costs, vowing improvement.

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