US Stock Market Overview – Stocks Drop Led Down by Technology
US stocks moved lower on Friday as mixed financial results on Thursday evening battered some best performing technology shares. While Facebook, Google, and Amazon reported much better than expected financial results, Apple’s revenues on the iPhone were worse than expected. Apple’s share priced dropped more than 6%, helping to drag down the broader markets. The Dow Industrial Average tested the 200-day moving average. All sectors in the S&P 500 index were lower on Friday, driven down by Technology shares, energy was the best performing sector on Friday. US consumer spending came in stronger than expected, as did the Chicago PMI ahead of Monday’s ISM manufacturing report. Next week is the general election in the US. The markets are currently pricing in a Biden victory and a subsequent increase in spending. If Trump somehow pulls off a victory, the markets are also likely to move higher. Total new U.S. coronavirus cases top 88,500, a record daily high, as the pandemic extends its reach throughout the country. Total confirmed infections in the U.S. near 9 million, just two weeks after hitting 8 million.
US Consumer Spending Rose More than Expected
US Consumer spending, rose 1.4% in September after gaining 1% in August, according to the Commerce Department. Expectations were for consumer spending rising 1% in September. Personal income rose by 0.9% in the month, exceeding expectations of a 0.4% increase. Income dropped 2.7% a month earlier.
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Chicago PMI Edges Slightly Lower
The final regional PMI report came out on Friday showing a slight decline in manufacturing. The Chicago PMI inched down to 61.1 in October, it remained quite close to the near-two-year-high of 62.4 reached in the prior month. Expectations were for the index to decline to 58.