'Blue Screen of Death' Adds to Tech Pain on Summer Friday | Wall Street Today
U.S. stocks pulled back Friday, as the largest IT crash in history sent tech even lower for the week following a semiconductor sector pullback.
The $Nasdaq Composite Index(.IXIC.US$ declined 0.81, with the $S&P 500 Index(.SPX.US$ down 0.71%, and the $Dow Jones Industrial Average(.DJI.US$ 0.93%. All sectors except healthcare were down intraday.
MACRO
Friday, investors are watching for Federal Reserve commentary. Thursday, initial jobless claim numbers increased for the week, ay 240k vs 220k expected.
Federal Reserve Gov. Christopher Waller said Wednesday that the central bank is "getting closer to the time when a cut," in interest rates is warranted. However, he still wants more evidence that inflation is slowing before he's ready to move.
"I believe current data are consistent with achieving a soft landing, and I will be looking for data over the next couple of months to buttress this view," Wall said in a speech in Kansas City. " So, while I don't believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted."
Federal Reserve Governor Adriana D. Kugler said Tuesday she anticipates "it will be appropriate to begin easing monetary policy later this year" if economic conditions continue to evolve in a favorable manner with more rapid disinflation and employment softens while remaining resilient. She addressed the National Association for Business Economics Foundation in Washington.
"If the labor market cools too much and unemployment continues to increase and is driven by layoffs, I would see it as appropriate to cut rates sooner rather than later," Kugler said.
SECTORS
Gold futures dropped by more than 1.8% in Friday dealings, on track to post their first weekly loss in a month in what some analysts see as a "typical" pullback in the wake of the metal's rise to record highs earlier this week.
While gold's decline "seems harsh, it's fairly typical behavior for a market that's being driven...largely by Western investor speculation," Brien Lundin, editor of Gold Newsletter, told MarketWatch.
$Bitcoin(BTC.CC$ rose more than 4% Friday to its highest level in roughly a month, taking several crypto-related stocks up as well as markets continued to move beyond the imminent $9 billion Mt. Gox payout.
BTC gained as much as 4.6% to a $66k intraday high Friday. The crypto has recently been rebounding from a sell-off last week that followed word the trustee liquidating crypto exchange Mt. Gox – which collapsed in 2014 – would soon pay out $9 billion of Bitcoin to the firm’s customers.
MOOVERS
$CrowdStrike(CRWD.US$, a cyber security firm took most of the blame, falling more than 11% after the firm told NBC a faulty update to its "Falcon Scanner" caused at least some of the issues that began Friday at 5:30 am. Most of the problems appear to have caused Microsoft 365 and Azure software and older Microsoft computers to crash Friday morning. One moomoo user called it Y2k if Y2k happened. Crowdstrike was the lowest-reaching stock on the S&P 500.
Windows computers and tablets crashed for millions of users worldwide, many displaying the “blue screen of death.” The outage shut down hospital systems, energy infrastructure, and even the payment processors and forced McDonald's in Japan to close.
$American Express(AXP.US$ reported earnings Friday, where second-quarter revenue (net of interest expense) grew 8% year-on-year to $16.33 billion, slightly missing the analyst consensus estimate of $16.59 billion. Amex pulled the Dow back after its record run this week.
$Scholastic Corp(SCHL.US$ fell more than 20% intraday Friday to a 22-month low after the children's book company posted weaker-than-expected fiscal Q4 results.
$The Travelers Companies(TRV.US$ was in the red, down 7.7% after the firm reported adjusted earnings that beat estimates but a $1.51B loss from Catastrophes like wind and hail. Its overall revenue grew to $11.28B, which is below estimates.
$Intel(INTC.US$ fell about 5.4%, the lowest decliner on the Dow after climbing close to 7% for the week.
$Hawaiian Electric Industries(HE.US$ shares are surging 37% Friday following a report suggesting the company reached a settlement plan over the Maui wildfires. Hawaiian Electric Industries is among the companies that have tentatively agreed to pay over $4 billion to resolve hundreds of lawsuits, Bloomberg reported, citing people familiar with the deal.
$Plug Power(PLUG.US$ shares declined 13% after detailing the pricing of its previously announced $200 million public share offering. Shares were trading around $2.47, extending losses from after-hours trading Thursday following the offering announcement. The stock is down 45% on the year.
Word from the herd: Mooers, what are you watching?
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Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
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Chasing_Freedom : out of all the fucking days I swear to God my luck like wtf statistically crazy to fyck up this much fucking birch
1000proof : My company started having issues with a system called hammer Thursday which caused all of our systems to become inaccessible around 5pm and didn’t come back up the rest of the evening. We were back up and running Friday morning at 8am but I’m curious if this is connected in any way.