Despite a downturn in the tech sector, Wall Street record its third weeks of gain on Friday in a mixed session. Weekly gain of 1.08% for the Dow Jones, 1.29% for the Nasdaq and 1.65% for the S&P 500.
Investors also digested the remarks of the president of the U.S. Central Bank (Fed) Jerome Powell during a virtual conference where he reaffirmed that the time for the reduction of asset purchases was “close”.
The S&P 500 kept seven out of the eleven sectors in green, led by banking stocks (+1.33%), which expect tighter credit conditions in the future.
The energy sector ended higher (+0.90%) on the back of rising oil prices.
In contrast, the communication services sector suffered a sharp decline (-2.28%), weighed down by big names such as Intel and Snap, and to a lesser extent, Facebook and Twitter.
Intel (-11.68 percent to 49.46 dollars) disappointed investors Thursday after the close with earnings below expectations. The shortage of electronic components continues to impact the computer group.
While its net profit grew by 5% in a year and its sales rose to 19.2 billion dollars, its main activity, processors for computers, saw its revenues decline by 2% to 9.7 billion dollars.
Snapchat parent company Snap has also caused problems for the Nasdaq. Its stock melted 26.60 percent to $55.13.
A privacy setting change introduced on Apple’s iPhone operating system led to a decline in revenue for the social network.
Stocks of other major social networks have also declined. Facebook (-5.05%) and Twitter (-4.91%) to $324.61 and $62.19, respectively.
A weekly rise.
Despite this decline in the tech sector, the Wall Street three major indexes ended the week positive for the third straight week. Weekly gain of 1.08% for the Dow Jones, 1.29% for the Nasdaq and 1.65% for the S&P 500.
Schwab analysts said the third quarter earnings season has been largely positive.
Markets will be inundated with results next week, including Facebook on Monday, Amazon on Thursday, and UPS, Twitter, Google, Microsoft, Coca-Cola, and Boeing.
On Thursday, the Fed will announce its first estimate of GDP growth in the third quarter. Friday will follow with the announcement of the PCE index.
One of the highlights of the week was the success of WeWork, which climbed another 10.53% on Friday to $13.02.
Shares of Digital World Acquisition Corp (SPAC), rose by 107.03% to 94.20 dollars.
In the bond market, 10-year Treasury bonds fell from 1.70% to 1.64%.