MSFT - S&P 500 Dow Nasdaq drop on earnings concerns

2023-04-25 16:08:28 ET

Concern about corporate earnings weighed on U.S. stocks on Tuesday. The Nasdaq led the major equity averages lower, with the tech-heavy index dropping by nearly 2%.

The Nasdaq Composite ( COMP.IND ) closed -2.0%, the S&P 500 ( SP500 ) ended -1.6% and the Dow ( DJI ) finished -1.0% .

Earnings news remained in focus. UPS ( UPS ) dropped nearly 10% after the package delivery giant's earnings and revenue came in below expectations .

Elsewhere, First Republic ( FRC ) lost nearly half its value after the company revealed significant Q1 deposit outflows and said it planned to cut jobs. The bank was also reportedly weighing the sale of securities and mortgages as part of a larger restructuring.

The earnings barrage continues after the closing bell. Google-parent Alphabet ( GOOG ) ( GOOGL ) and Microsoft ( MSFT ) were both scheduled to announce results in the postmarket period.

Investors also digested another round of economic news. The Conference Board reported a consumer confidence indicator that dropped to its lowest level since July.

Meanwhile, new home sales jumped 9.6% in March, climbing more than expected. At the same time, the FHFA house price index posted a surprise advance .

The bond market was marked by buying, sending Treasury yields sharply lower. The 10-year yield ( US10Y ) declined 13 basis points at 3.39%, while the 2-year yield ( US2Y ) dropped 22 basis points to 3.98%.

Elsewhere on the earnings front, Xerox ( XRX ) jumped 14% after its quarterly profit topped expectations .

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