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U.S. equities slumped at midday following a report showing the economy contracted in the first quarter.
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Super Micro Computer’s preliminary results missed estimates, and shares plunged.
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Mondelez exceeded profit forecasts as it raised prices.
U.S. equities dropped at midday after the Commerce Department reported first-quarter gross domestic product (GDP) declined 0.3%. The S&P 500 and Nasdaq were down about 1%, and the Dow Jones Industrial Average was lower as well.
Super Micro Computer (SMCI) was the worst-performing stock in the S&P 500 when the troubled computer server maker provided preliminary fiscal third-quarter results that were below forecasts, explaining that customers delayed purchases.
Shares of Snap (SNAP) tumbled when the operator of the Snapchat social media platform said it wouldn’t give current quarter guidance and will reduce costs because of “uncertainty” about macroeconomic conditions ahead.
Shares of JetBlue Airways (JBLU) and United Airlines Holdings (UAL) sank on a report that the two airlines were holding negotiations about a partnership.
Mondelez International (MDLZ) shares gained as higher prices helped the maker of Oreo Cookies, Ritz Crackers, and other snacks beat profit estimates.
Shares of Seagate Technology (STX) took off after the data storage manufacturer exceeded earnings and revenue expectations on the company’s structural enhancements to its business model and a strong supply and demand environment.
Trane Technologies (TT) shares rose as the maker of heating and air conditioning systems also posted better-than-expected results and gave solid guidance on a jump in North American sales.
Oil and gold futures declined. The yield on the 10-year Treasury note was little changed. The U.S. dollar advanced on the euro, pound, and yen. Prices for most major cryptocurrencies slid.
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