Stocks Begin to Fall as Technology Giants Disappoint

Technology stocks have caused the NASDAQ to fall by 1% on Wednesday. Apple (APPL), the world’s largest traded company, stocks have dropped by nearly 5% on the day. Apple stock is down by $6.50 to $124.25 a share. The company’s stock hit a daily low of $121.99 a share before bouncing back slightly.
The company’s stock is down due to Q4 revenue forecasts falling short of expectations.
Microsoft (MSFT) stock has fallen by 4% on Wednesday, down to $45.35 a share. The company’s stock is down due to the largest quarterly loss in company history. Microsoft’s main product lineup is performing well despite demand for the Windows operating system declining. Microsoft’s loss came after the company wrote off its Nokia business.
Internet company Yahoo (YHOO) forecasted lower-than-expected revenues for the current quarter, causing the company’s stock to drop 1.4% to $39.18 a share. The company is determined to bring back its core advertising business, which is eating into the company’s revenue forecast.
The stock market is at record highs despite current dips. The S&P 500 is expected to dip 1.5%, while January forecasts predicted the S&P would see a 5.9% gain on the year. Earnings for 70% of companies has beaten analyst expectations, but revenue forecasts have only been topped 55% of the time, missing the beat rate of 61%.
Technology companies are struggling, but Boeing (BA) and Coca Cola (KO) have helped offset the losses somewhat. Earnings are ultimately what drive the market and it is expected that companies will post their highest earnings in the second half of the year.
Commodities, such as oil and gold have also seen their prices fall on the day.
Boeing stock rose slightly on reports of the company’s results beating expectations and the announcement of FedEx (FDX) ordering 50 freighters from the company in a deal valued at $9.97 billion.

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