Markets Fall on Worries About Corporate Profits

The rally for U.S. equities ended as concerns about corporate profits weighed on markets. The S&P 500 and Nasdaq sank more than 1%, while the Dow lost 0.6%.

Alphabet (GOOGL) shares tumbled after the Google parent showed off its chatbot, Bard, as it tries to compete with Microsoft (MSFT) and Baidu (BIDU) in using artificial intelligence (AI) in search engines. Lumen Technology (LUMN) was the worst-performing stock in the S&P 500, with shares hitting a 35-year low, on the telecom company’s worse-than-expected full-year outlook. Shares of Chipotle Mexican Grill (CMG) dropped after the Mexican fast-food restaurant chain’s earnings and revenue came in short of forecasts.

Shares of Intel (INTC) and other semiconductor companies fell. Shares of other big tech names, including Apple (AAPL), Amazon (AMZN), Cisco Systems (CSCO), and Salesforce (CRM), dropped. Shares of Chevron (CVX) and rival oil producers declined after President Biden called for big new taxes on their stock buybacks in his State of the Union Address, calling the industry’s profits “outrageous.”

Uber Revenue Records

Uber Technologies (UBER) set all-time highs for quarterly and full-year revenue, and its shares rose. Shares of CVS Health (CVS) advanced as the pharmacy and health firm exceeded earnings forecasts and acquired primary care center operator Oak Street Health (OSH). Fox Corporation (FOXA) shares climbed after the media company reported a jump in ad sales. The Walt Disney Company (DIS) shares posted a small gain ahead of the entertainment giant’s after-the-bell earnings report, and shares are taking off in extended trading.

Oil and gold futures rose. The yield on the 10-year Treasury note declined. The U.S. dollar gained on the euro and yen but slid against the pound. Prices for most major cryptocurrencies were in the red.