Wall Street mixed as Amazon wins and Meta weighs in By Reuters
© Reuters. FILE PHOTO: A trader works, as Federal Reserve Chairman Jerome Powell is seen delivering remarks on screens on the floor of the New York Stock Exchange (NYSE) in New York, USA United, January 26, 2022. REUTERS/Brendan McDermid/File Photo
By Bansari Mayur Kamdar and Noel Randewich
(Reuters) – Wall Street was mixed on Monday as investors digested recent quarterly results from megacaps Amazon and Facebook owner (NASDAQ:) Meta Platforms, while Peloton surged on reports of buyer interest potential, including Amazon.
Nine of the 11 major sector indices were up at midday, led by energy, with a gain of 1.4%.
Amazon.com Inc (NASDAQ:) added nearly 1%, extending its gains after boosting its market capitalization by around $190 billion on Friday on explosive earnings.
Meta Platforms fell 4.8%, extending losses after its gloomy forecast last week caused the social media company’s stock market value to fall to a record high.
Meta weighed on the S&P 500 more than any other stock, while Nvidia (NASDAQ:) rose 1.7%, lifting the index more than any other stock.
Peloton Interactive (NASDAQ:) Inc jumped 19% following reports that Amazon and Nike (NYSE:) are exploring potential takeover deals for the stationary bike maker.
Shares of other tech titans Apple Inc (NASDAQ:), Microsoft Corp. (NASDAQ:) and Alphabet (NASDAQ:) Inc, owner of Google, were mixed.
The S&P 500 remains down more than 6% so far in 2022 as investors fear the Fed will raise interest rates faster than expected.
“Buying the dip was a foregone conclusion until 2022. There’s no more guaranteed buying on the dip,” said Jake Dolllarhide, managing director of Longbow Asset Management in Tulsa, Oklahoma. “We are seeing corrections in indices and individual stocks on a daily and weekly basis.”
The S&P 500 gained 0.27% to 35,182.76 points, while the S&P 500 gained 0.05% to 4,502.6.
The fell 0.07% to 14,087.77.
Tyson Foods Inc (NYSE:) jumped 10% after the meatpacker’s first-quarter profit nearly doubled and jumped from past estimates on higher prices.
Of 278 S&P 500 companies that reported earnings on Friday, 78.4% beat analysts’ expectations, according to Refinitiv data.
A surprisingly strong jobs report last week heightened investor concerns about a potentially aggressive tightening of monetary policy by the US Federal Reserve. Key inflation data for January is due Thursday.
Markets are now pricing in a one-in-three chance that the Fed could hike 50 basis points in March and the rate outlook hitting 1.5% by the end of the year. [FEDWATCH]
Spirit Airlines (NYSE:) Inc jumped about 17% after it and Frontier Group Holdings unveiled plans to create America’s fifth largest airline in a $2.9 billion combination. This pushed the S&P 1500 Airlines Index up 3.3%.
Chinese stocks listed in the United States Ali Baba (NYSE:) Group Holding fell nearly 6% after registering an additional 1 billion US depository shares.
Advancing issues outnumbered declining ones on the NYSE by a ratio of 1.36 to 1; on the Nasdaq, a ratio of 1.48 to 1 favored advancers.
The S&P 500 posted 16 new 52-week highs and five new lows; the Nasdaq Composite recorded 29 new highs and 83 new lows.