The Nasdaq entered correction territory this week
It was a tough week on Wall Street, as all three major indexes marked their lowest levels since May. The Nasdaq Composite (IXIC) had a particularly rough five days, falling into correction territory after Big Tech earnings disappointed on more than one occasion. The 10-year Treasury yield weighed on the tech-heavy benchmark at several points as well, as it hovered below 5% after a brief foray above it. There was plenty of economic data throughout the week, including gross domestic product (GDP).
Big Tech This Week
There were several large post-earnings declines from Big Tech giants this week. Alphabet (GOOGL) and Microsoft (MSFT) both announced their reports after the close on Tuesday, the latter ending Wednesday with a steep 9.5% drop. Though Facebook parent Meta Platforms (META) posted strong results, the shares still moved sharply lower as well. IBM (IBM) and Amazon (AMZN), however, moved higher after their upbeat results, the latter helping boost the Nasdaq at the end of the week. And while it’s not ‘Big Tech,’ Dell Technologies (DELL) is flashing a bull signal on the charts.
Dow Stocks Making Moves
Blue-chip beverage stock Coca-Cola (KO) moved higher following the company’s beat-and-raise, drawing call traders. Fellow Dow member Boeing (BA) also reported earnings this week, though its delivery forecast was what weighed on the shares. Meanwhile, Merck & Co (MRK) received an upgrade from BMO Capital.
Fed Decision, Crowded Earnings Slate Dominate Next Week
At the start of this week, Schaeffer’s V.P. of Research Todd Salamone pointed how delta-hedge selling may have overpowered bullish sentiment. Small caps are struggling, per the Russell 2000 Index (RUT): here’s what that could mean for the S&P 500 (SPX), according to Schaeffer’s Senior Quantitative Analyst Rocky White. Looking at next week, we will get the latest interest rate decision from the Federal Reserve, as well as a slew of other earnings reports and economic data.