- Twitter plunges on dull second-quarter outlook
- Chevron down as profit drops on weaker refining margins
- U.S. consumer spending rebounds in March
- Indexes: Dow -0.59%, S&P 500 -0.72%, Nasdaq -0.85%
April 30 (Reuters) - Wall Street dropped on Friday, with Apple, Alphabet and other tech-related companies dipping despite recent strong quarterly earnings reports.
A day after the S&P 500 closed at a record high, Apple (AAPL.O), Google-parent Alphabet (GOOGL.O) and Facebook (FB.O) each fell more than 1%, giving back gains following upbeat quarterly reports this week.
Amazon.com Inc (AMZN.O) rose 0.4% after it posted record profit late on Thursday and signaled that consumers would keep spending in a growing U.S. economy. Amazon had been up over 2% earlier in the session.
While megacap favorites posted largely strong earnings in the first quarter, their shares have struggled to maintain the upward trajectory that many had coming into reporting season.
"There is a sense that maybe next quarter is as good as it's going to get, and we're going to roll over, particularly among the Nasdaq stocks and Big Tech stocks that benefited from the pandemic," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Palm Beach, Florida.
Of the 303 companies in the S&P 500 that have reported so far, 87.1% have topped analysts' earnings estimates, with Refinitiv IBES data now predicting a 46.3% jump in profit growth.
Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government.
Despite Friday's weakness, the Nasdaq (.IXIC) is set for six consecutive months of gains, boosted by impressive results from big technology companies. The Dow Jones Industrial Average (.DJI) is on course to end in the positive territory for three months in a row.
The Nasdaq Composite (.IXIC) dropped 0.85% to 13,963.28.
AbbVie Inc (ABBV.N) rose 0.6% after it reported strong results and raised its 2021 earnings forecast, helped by demand for its rheumatoid arthritis drug in the United States.
Declining issues outnumbered advancers for a 2.12-to-1 ratio on the NYSE and for a 1.98-to-1 ratio on the Nasdaq. The S&P index recorded 44 new 52-week highs and no new low, while the Nasdaq recorded 52 new highs and 26 new lows.
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