Daily market review

United States

Equities gave back Thursday's gains and more on Friday after disappointing results from Amazon and other heavyweights. Losses extended across the board amid fear that earnings will suffer from slowing growth, rising interest rates, and supply chain chaos.

The Dow Jones industrial average fell 2.8 percent, the S&P 500 lost 3.6 percent and the NASDAQ plunged 4.2 percent on Friday. The indexes ended at their lows for the week and month, with the S&P down 10 percent and the NASDAQ off 15 percent in April.

A rout in Amazon, down a shocking 14 percent Friday, hit consumer discretionary shares after the e-commerce goliath missed earnings expectations and warned that growth in its core retail business has stalled. Other big names letting the market down included Apple, down 3.7 percent after the iPhone maker topped expectations for the first quarter but warned that supply shortages and weaker demand would hit sales in the second quarter. Friday's disappointment came after better results for Meta/Facebook on Thursday raised hopes for a return of the days when megacaps routinely surprised on the upside.

Investors punished Intel, down 6.9 percent, for its soft guidance, despite earnings and revenues beats. In the energy space, Exxon declined 2.2 percent after taking a hit on its Russian assets and missing on revenue expectations. Chevron fell 3.2 percent on earnings disappointment. Verizon, down 4.3 percent, was another notable weight on the Dow.

Other decliners included retailers, reopening plays, homebuilders, and biotech. On the somewhat positive side, materials outperformed as hopes for Chinese economic stimulus boosted commodities prices.

These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose US$2.12 to US$109.34 while spot gold rose US$1.30 to US$1,899.95. The US dollar was mixed vs. major currencies. The US Treasury 30-year bond yield rose 7 basis points at 2.97 percent and the 10-year note yield rose 8 basis points to 2.91 percent.


Positive earnings news and hopes for new Chinese economic stimulus helped equities rise Friday. The Europe-wide STOXX rose 0.7 percent, the German DAX gained 0.8 percent, the French CAC firmed 0.4 percent and UK FTSE 100 was up 0.5 percent.

Best sectors were basic resources, financial services, and technology while utilities lagged. On a busy earnings day, pharma got a boost from Novo Nordisk, up 5.4 percent, and Astra Zeneca, up 1.0 percent, on upbeat results and guidance. Banks got a lift from BBVA, up 6.6 percent on an earnings beat.

Among other companies in focus, Prosus, the consumer internet conglomerate, got a lift as Chinese internets rallied on hopes for a respite in China's regulatory push. Indra Systems, the technology conglomerate, gained 6.1 percent after an earnings beat and strong guidance.

On the downside, Henkel, the consumer goods maker, fell 3.6 percent after issuing a profits warning, and Danske Bank lost 6 percent on a profits miss.

Asia Pacific

Equities popped up on new pro-growth pledges from the Chinese government. Japanese equities did not trade as Golden Week got under way.

More promises from the Chinese politburo to boost growth ignited a risk-on recovery Friday in Chinese markets. China's CSI 300 and the Shanghai index both rose 2.4 percent, and Hong Kong's Hang Seng index jumped 4.0 percent. Hong Kong's tech giants led the winners as statements from Chinese officials suggested they would find ways to support the "platform economy."

South Korean equities and Taiwan equities tracked Chinese markets higher with the KOSPI up 1.0 percent and Taiwan's Taiex rising 1.1 percent. The BSE Sensex slipped 0.8 percent with banking and energy stocks leading the decline.

Australian equities bounced back to cap a volatile week with the All Ordinaries index up 1.1 percent. Tech, telecom, and consumer discretionary stocks outperformed while materials and real estate lagged but all finished higher.

Global Stock Market Recap

Global Bond Market Recap

Global Currency Recap

Commodities and currencies

Looking forward