Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

S&P 500 Eases From All-Time Highs on Facebook Slump

Stock MarketsOct 26, 2021 19:48
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Yasin Ebrahim – The S&P 500 eased from all-time highs Tuesday, as a Facebook-fueled  wobble in communication services kept gains in check, but signs the consumer is in good shape continued to underpin investor sentiment.

The S&P 500 rose 0.3% after hitting an a record high earlier of 4,598.36. The Dow Jones Industrial Average gained 0.2%, or 63 points, and also notched an intraday record of 35,892.92. The Nasdaq was up 0.2%.

Facebook (NASDAQ:FB) fell more than 4% after the social media giant reported mixed third-quarter results and flagged a drag on ad-revenue growth from Apple (NASDAQ:AAPL)'s privacy changes to its mobile operating system iOS.

A slew of Wall Street analysts downgraded their outlook on Facebook, with some pointing to the significant impact on margins from Facebook's plan to increase investments.

"Given all the trends in the quarter and concerns around iOS/ATT, we believe what is flying somewhat under the radar is the significant step up in total expenses in 2022," Wedbush said in a note as it cut its price target on Facebook to $325.00 from $350.00.

The busy week for big tech continues, with Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), and Twitter (NYSE:TWTR) set to report quarter results after the closing bell.

A jump in chip stocks, meanwhile, supported the broader tech sector underpinned by a rally in Nvidia (NASDAQ:NVDA) as Facebook's plans to spend big on its metaverse division is expected to bolster demand for chips.

Industrials struggled to shake off losses as a slump in Lockheed Martin offset a climb in United Parcel Service and General Electric .

Lockheed Martin (NYSE:LMT) plunged more 12% after the defense contractor cut its guidance following a quarterly revenue miss that fell short of expectations.

United Parcel Service (NYSE:UPS) reported a beat on both the top and bottom lines and upgraded its outlook on margins as the logistics giant was able to weather the storm of inflation by hiking prices. Its shares were up nearly 7%.

General Electric (NYSE:GE) was up 2% after reporting better-than-expected earnings and cashflow, while revenue missed Wall Street estimates.  

The latest quarterly results indicating that companies are able to raise prices to protect margins have removed doubt about the strength demand, helping investors look through supply-chain issues and increase their bullish bets on the stocks.

"Companies have cited margin issues, and supply chain disruptions … but so far management teams have been able to navigate these issues," Aptus Capital Advisors portfolio manager David Wagner told in an interview on Tuesday. "Investors are looking past the disruptions as temporary and instead are focused on continued strong demand." 

"Fears that factors [including supply-chain disruptions] would potentially reduce the expected 2022 S&P 500 earnings have not come to fruition and that's why we have markets at all-time highs," Wagner added.

In another sign pointing to the strength of the consumer, consumer confidence increased for first time since June.

The consumer confidence index rose to 113.8 in October, well above expectations for 108.0 as the "fading of Delta fears is outweighing the hit from higher energy prices," Pantheon Macroeconomics said in a note.

S&P 500 Eases From All-Time Highs on Facebook Slump

Related Articles

Affirm Holdings Rallies After DA Davidson Upgrade
Affirm Holdings Rallies After DA Davidson Upgrade By - Jan 28, 2022

 By Sam Boughedda — Fintech company Affirm Holdings Inc (NASDAQ:AFRM) shares surged 16% Friday on the back of an upgrade by DA Davidson. Analyst Christopher...

S&P 500 Rides Apple Rally Higher as Tech Fights Back
S&P 500 Rides Apple Rally Higher as Tech Fights Back By - Jan 28, 2022

By Yasin Ebrahim – The S&P 500 rallied Friday, as blowout quarterly results from Apple put tech back into the driving seat following a recent rout amid jitters about...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email