U.S. stocks opened higher on Friday led by Amazon.com Inc.’s (NASDAQ: AMZN) strong earnings, but the market quickly faded as technology stocks began to pull back, off setting the gains.
The Dow Jones Industrial Average opened slightly higher on Friday before falling 101.04 points after the opening bell. The Nasdaq Composite opened 76 points higher, before falling 105.87 points to Friday’s low from its open.
Amazon smashed its earnings estimates, leading Wall Street to increase its ratings for the online retailer. Amazon reported revenue of $51.0 billion, increasing 43 percent year over year. Net income more than doubled to $1.6 billion from the same quarter a year prior. Shares surged by over 7 percent to a new all time high of Friday’s open of $1,634.01.
Microsoft Corporation (NASDAQ: MSFT) opened 4 percent higher on Friday after beating its first quarter earnings. The company reported revenue of $26.82 billion, increasing 15.6 percent year over year, and an EPS of $0.95.
Intel Corporation (NASDAQ: INTC) also topped analysts’ estimates for its first quarter results. The company reported revenue of $16.1 billion, increasing 8.8 percent year over year, and an EPS of $0.87. Shares opened strong at $55.35, before falling flat to nearly Thursday’s close of $53.05.
Exxon Mobil Corporation (NYSE: XOM) reported weaker than expected earnings, causing shares to drop 3.3 percent late Friday morning. The company reported revenue of $67.2 billion, increasing 16.2 percent year over year, and EPS of $1.09, missing analysts’ estimates by $0.01. Weak results from the company’s fuel refining and chemicals segment offset the revenue growth.
Although Exxon missed its estimates, still nearly 80 percent of S&P 500 companies have beaten their quarterly estimates, according to FactSet.
Netflix Inc. (NASDAQ: NFLX) shares fell by 0.7 percent, Apple Inc. (NASDAQ: AAPL) fell by 1.4 percent and Alphabet Inc. (NASDAQ: GOOGL) fell by 0.6 percent. Google reported earlier this week, topping estimates, but shares fell due to its increased expenditures.
The U.S. economy grew by 2.3 percent in the first quarter, the Commerce Department said. Economist polled by Thomson Reuters forecasted 2 percent.
The 10-year U.S. Treasury yield fell below 3 percent as fear of increased rates loomed, increased federal borrowing and inflation concerns.
On the Korean peninsula, the South Korean and North Korean leaders met at the border for an in-person meeting regarding tensions and the war. The stalemated war between the two is expected to end and North Korea will look into complete denuclearization on the peninsula. Korea’s KOSPI rose by 0.68 percent on easing tensions.