Stock Market Today: Big Tech Beatdown Keeps Stocks in a Slump
Apple (AAPL), Facebook (FB) and Amazon (AMZN) helped lead the market lower in an especially painful Friday for the tech-heavy Nasdaq.


The usual store of worries -- election uncertainty, COVID's resurgence and stalled stimulus -- no doubt weighed large on investors during a broadly brutal Friday for U.S. equities.
But Big Tech gets a special nod for its role in dragging down the wider market.
Apple (AAPL) slightly topped earnings expectations, but shares slumped 5.6% amid a 20% decline in quarterly sales and a lack of forward-looking guidance.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
It wasn't all bad. "The bang-bang launches of iPad Air, Watch series 6, the service bundles, and the new 5G iPhones in autumn show that Apple is firing on all cylinders," writes Argus Research's Jim Kelleher (Buy, $150 price target), who adds that "the September iPad and Watch launch and the October iPhone launch should drive momentum for Apple products heading into the holiday season."
Facebook's (FB) top and bottom lines easily exceeded estimates, but a decline of 2 million users across North America triggered a 6.3% exodus from shares. And Amazon.com (AMZN)? A Street-beating 37% jump in revenues, and profits that were 67% better than estimates … but the stock sank 5.5% thanks to disappointing Q4 earnings estimates amid high COVID-related costs.
"None of Thursday's tech earnings results were bad, and some were spectacular," says David Bahnsen, chief investment officer of wealth management firm The Bahnsen Group, "but the market is reacting negatively because when something is priced for better-than-perfection, it becomes pretty hard to live up to those expectations."
Those reports and others helped drag the tech-heavy Nasdaq Composite 2.5% lower to 10,911. The Dow Jones Industrial Average enjoyed a late-afternoon rally that limited its losses, falling just 0.6% to 26,501.
The Pros' Picks: 9 Stocks to Sell Now
Other action in the stock market today:
- The S&P 500 declined 1.2% to 3,269.
- The small-cap Russell 2000 finished 1.5% lower to 1,590.
- Google parent Alphabet (GOOGL, +3.8%) was an exception from the pain in mega-cap tech and communications, as strong advertising growth helped it exceed Wall Street expectations. Earnings of $16.40 per share easily cleared Wall Street estimates for $11.29.
- Exxon Mobil (XOM, -1.1%) reported a nearly 30% decline in revenues and an 18-cent-per-share quarterly loss for Q3, though both the top and bottom lines were better than expected. The company's dividend, which some analysts believe is in danger of being cut, was maintained at 87 cents per share for the fourth quarter.
For Those Who Buy Dips ...
And thus ends the worst week for the markets since March, in what has been a downright dreadful lead-up to next week's elections.
The Nasdaq and Dow are both off 8.1% since Oct. 12, and the S&P 500 has dropped 7.5%. The latter's current level of 3,269 should be watched carefully -- if the index finishes near there or lower, that would bode poor things for the incumbent, at least based on one highly accurate market indicator.
But the low prices are becoming an increasingly sweet incentive for those investors who heeded warnings about high volatility around the election and kept some dry powder for the right opportunity. You could take a stab at growth via these seven small-cap tech plays, or seek out a balance of growth and stability via these 15 prime mid-cap opportunities.
Or you can really use lower prices to your advantage and squeeze higher yields out of the market's most aggressive dividend growth stocks. Analysts have recently highlighted a number of payout-hiking companies that have sweetened the pot by an average of 10% annually over the past half-decade -- and that level of dividend growth, over time, can give these stocks an advantage over more sluggish stocks with high current yields.
Kyle Woodley was long AAPL, AMZN and FB as of this writing.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
$40,000 CD vs $40,000 High-Yield Savings Account - 3 Things Savers Should Consider Now
Both options offer risk-free methods to grow your savings. Learn how much you can earn with each, how they differ and which one suits you best.
-
I'm 51 and my portfolio is up. I'm planning to retire at 60 and want to start moving out of stocks. Is that smart?
We ask financial experts for advice.
-
Dow Gains 617 Points as Rate Cuts Near: Stock Market Today
Wednesday's economic data didn't shift Wall Street's expectations that the Fed is preparing for a rate cut at next week's meeting.
-
S&P 500 Hits New High After Oracle Earnings: Stock Market Today
Another down day for Apple held the Dow Jones Industrial Average back, though.
-
Stocks Grind Up to New All-Time Highs: Stock Market Today
UnitedHealth stock led the Dow Jones Industrial Average amid increasing signs the labor market has not been well for months.
-
Markets Prepare for August Inflation Data: Stock Market Today
Apple CEO Tim Cook is still important, but price action this week is as much about incoming inflation data ahead of next week's Fed meeting.
-
Big Tech Names Rise Above Broad Weakness: Stock Market Today
Some familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
Alphabet Stock Pops After Google Antitrust Ruling: What to Know
GOOGL stock is soaring Wednesday after a judge ruled that Alphabet does not have to divest its Chrome browser.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have Today
Sherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
AI Start-ups Are Rolling in Cash
The Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.