U.S. stocks extended their slump on Friday as lingering chaos related to a global technical outage caused by a software glitch added uncertainty to an already-anxious market.
Market Snapshot
The S&P 500 fell 0.71% to end the session at 5,505.00 points. The Nasdaq fell 0.81% at 17,726.94 points, while Dow Jones Industrial Average fell 0.93% to 40,287.53 points.
Market Movers
Microsoft was down 0.7% and CrowdStrike declined 11% as a massive worldwide IT outage grounded flights and disrupted stock exchanges following an overnight content update by the cybersecurity company that crippled Microsoft’s PC operating systems. CrowdStrike CEO George Kurtz said the “issue has been identified, isolated and a fix has been deployed.” He said it wasn’t a “security incident or cyberattack.”
Netflix reported better-than-expected second-quarter earnings and added 8.05 million subscribers in the period, topping analysts’ estimates and the 5.89 million subscribers added a year earlier. Shares of the streaming giant slipped 1.5%. Netflix posted revenue that was roughly in line with Wall Street estimates and the company forecast a 14% increase in third-quarter revenue to $9.7 billion, which would be slightly below consensus.
Nvidia shares were down 2.6% on competition concern. Custom chip specialist Broadcom is in talks with OpenAI, the developer of ChatGPT, about developing an new AI processor, technology-focused news outlet.
Serve Robotics jumped 187.07% to $7.55 after chip giant Nvidia disclosed its investment in the self-driving delivery company. Nvidia said in a Securities and Exchange Commission filing that it had bought 62,500 shares of Serve for $4 apiece in a July 2023 private placement.
Intuitive Surgical, the robotic surgery company, reported second-quarter adjusted profit that beats analysts’ estimates and sales of $2.01 billion, which were better than expectations of $1.97 billion. Intuitive Surgical said procedures with its da Vinci robotic systems rose 17% from a year earlier. Shares rose 9.3%.
PPG Industries posted second-quarter earnings and revenue that fell from a year earlier, sending shares of the paint and coatings company down 2.8%. The company said it saw organic sales growth in its many of its businesses, including aerospace coatings and packaging coatings. But that growth “was offset by global automotive builds that weakened as the quarter progressed and global industrial production which remained soft.”
Plug Power dropped 14% after the hydrogen-technology company announced a public share offering of $200 million.
American Express reported second-quarter profit that topped analysts’ expectations. Amex also raised its full-year earnings guidance to $13.30 to $13.80 a share, up from a previous $12.65 to $13.15, and held steady earlier guidance that it expects revenue to grow between 9% and 11% this year. The stock, however, was down 2.7%.
SLB posted second-quarter earnings that were higher than a year earlier and the stock gained 2%. Per-share earnings of 77 cents missed analysts’ forecasts of 82 cents. Revenue at the oil-services company rose 13% to $9.14 billion.
Halliburton, the oil-services provider, reported second-quarter revenue that missed Wall Street estimates. Revenue rose to $5.83 billion from almost $5.8 billion a year earlier but came up short of estimates of $5.95 billion. Shares declined 5.6%.
Arm Holdings rose 3.2% after shares of the chip maker were upgraded to Overweight from Equal Weight at Morgan Stanley and the price target was raised to $190 from $107.
Travelers fell 7.8% after the insurance company posted second-quarter revenue that missed estimates and it said catastrophe losses in the period rose 1.9% to more than $1.5 billion.
Market News
Tesla Halted Some Production Lines Due to Global IT Outage
Tesla halted some production lines due to the global IT outage, Business Insider reported on Friday, citing sources familiar with the matter.
The automaker sent some production employees home early during the night shift at its Austin, Texas and Sparks, Nevada facilities, the report added.