Midday Update: Stock Gains Vanish

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Gains on the S&P 500 vanished by midday Friday, as almost all sectors suffered more throughout the day. 

The S&P 500, up 0.4% in the morning, fell 0.6% by midday. The Tech heavy Nasdaq, after having gained 1% in the morning, faded to a 0.2% down move. Another bearish signal was the 10-Year Treasury yield staying flat at 0.55%. 

Apple  (AAPL) - Get Report, Facebook  (FB) - Get Report and Amazon  (AMZN) - Get Report rose 6%, 8% and 3% after beating revenue and earnings easily. Facebook’s guidance was also strong, pointing to an ad revenue recovery by the end of the year and into 2021. Apple’s iPhone revenue was far stronger than expected. Amazon grew revenue to $88 billion for a 40% year-over-year increase, on the strength of the surging e-commerce market in the at-home environment. 

Google  (GOOGL) - Get Report fell 4.5% after and earnings rand revenue beat, but some shaky commentary on ad spend going forward. Even with big tech surging, the broader market was selling off. Elsewhere on the Nasdaq, semiconductors and healthcare fell considerably. 

Large cap Consumer Discretionary, oil and banking were down 2%, 2% and 1.8%, respectively. Even as consumer spend rose 5% in June, on the back of pent-up demand, state reopenings and economic stimulus, cyclicals have been pressured, as the economic recovery has been slowing of late. 

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