- The Amazon -7.2% and Alphabet -2.3% revenue misses are weighing on the broader market with the Nasdaq 100 down 2.2% though analysts generally didn’t care. The Technology Select Sector SPDR Fund (NYSEARCA:XLK) is down 1.6%, the S&P 500 IT index is down 1.6%, and the Philadelphia Semiconductor Index is down 1.3% compared to the 2% Nasdaq decline and 1.6% drop for the S&P 500.
- Semis: Western Digital’s -17.9% earnings miss and warning on a supply/demand imbalance in flash memory pricing have sent the suffering semiconductor market down again. NAND peers Micron -4.1% and Seagate 6.6% are taking the most heat with WDC. Flex -27.5% and Power Integrations -8% both fell on their own earnings misses. Intel +3.8% stands out in semis as the gainer with earnings beats and upside guide, a rarity among this week’s reports.
- Hardware: WDC’s warning and Seagate’s slide have also hit hardware names with (HPQ -1.4%), (HPE -2.2%), and NetApp (NTAP -4.3%) among the movers.
- Internet and Social Media: The Amazon and Alphabet misses plus Snap's -11.7% post-earnings suffering are slightly offset by Expedia’s +2.1% positive print.
- Related broad tech and internet ETFs: XLK, VGT, FDN, TECL, FTEC, IYW, ROM, QTEC, RYT, FNG, TECS, IGM, FXL, XNTK, REW, JHMT, XWEB, XITK, FNGD, FNGU
- Top stories this morning:
- Previously: Intel +3.6% on beats, Data Center recovery, and upside guide (Oct. 25)
- Previously: Expedia +8% after guidance update (Oct. 25)
- Previously: Snap plunges nearly 13% post-earnings (Oct. 26)
- Previously: Flex -17% on misses, CEO retirement, and Nike wind-down (Oct. 25)
- Previously: Power Integrations -9.3% on mixed Q3, downside guide (Oct. 26)
- Previously: Alphabet -4.5% on Q3 revenue miss (Oct. 25)
- Previously: Amazon -5% on Q3 revenue miss; AWS +46% Y/Y (Oct. 25)
- Previously: Western Digital will reduce CY19 wafer output by up to 15% (Oct. 25)
- Previously: Semis slide on rough weak of misses, warnings (Oct. 26)