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US STOCKS-S&P 500 falls, still on track for third straight month of gains

Published 05/01/2021, 12:15 AM
Updated 05/01/2021, 12:20 AM
© Reuters.

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window.)
* Twitter plunges on dull second-quarter outlook
* Chevron down as profit drops on weaker refining margins
* U.S. consumer spending rebounds in March
* Indexes down: Dow 0.61%, S&P 0.57%, Nasdaq 0.40%

(Updates prices to early afternoon)
By Shivani Kumaresan and Shreyashi Sanyal
April 30 (Reuters) - The S&P 500 fell in early afternoon
trading on Friday, after a slew of strong quarterly earnings and
upbeat economic data put the benchmark index on track for a
third straight month of gains.
The Nasdaq .IXIC is set for six consecutive months of
gains, boosted by impressive results from big technology
companies. The Dow Jones Industrial Average .DJI is on course
to end in the positive territory for three months in a row.
Amazon.com Inc AMZN.O rose 1.1% after it posted record
profit and signaled that consumers would keep spending in a
growing U.S. economy and converts to online shopping are not
likely to leave. Twitter Inc TWTR.N plunged 12.8% as it offered tepid
revenue forecast for the second quarter, saying user growth
could slow as the boost seen during the pandemic fizzles.
Other high-flying stocks including Microsoft Corp MSFT.O ,
Facebook Inc FB.O , Alphabet Inc GOOGL.O and Apple Inc
AAPL.O fell between 0.3% and 1.5%.
Even though megacap favorites posted largely upbeat earnings
in the first quarter, their shares have struggled to maintain
the upward trajectory they had coming into reporting season.
"I think we are overdone. I don't think all of these gains
are going to continue and that the optimism is going to go
beyond what's reasonable to expect," said Mike Zigmont, head of
trading at Harvest Volatility Management.
Nine of the 11 major S&P 500 sectors were trading lower,
with technology .SPLRCT , materials .SPLRCM and energy
.SPNY falling more than 1% each.
Of the 303 companies in the S&P 500 that have reported so
far, 87.1% have topped analysts' earnings estimates, with
Refinitiv IBES data now predicting a 46.3% jump in profit
growth.
Data on Friday showed U.S. consumer spending rebounded in
March amid a surge in income as households received additional
COVID-19 pandemic relief money from the government. 12:01 p.m. ET the Dow Jones Industrial Average .DJI was
down 209.03 points, or 0.61%, at 33,851.33, the S&P 500 .SPX
was down 23.99 points, or 0.57%, at 4,187.48 and the Nasdaq
Composite .IXIC was down 55.84 points, or 0.40%, at 14,026.70.

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Chevron Corp CVX.N shed 3% after its first-quarter profit
fell 29%, hit by weaker refining margins and production losses.
AbbVie Inc ABBV.N rose 0.5% as it reported strong results
and raised its 2021 earnings forecast, helped by demand for its
rheumatoid arthritis drug in the United States.
Declining issues outnumbered advancers for a 2.12-to-1 ratio
on the NYSE and for a 1.98-to-1 ratio on the Nasdaq.
The S&P index recorded 44 new 52-week highs and no new low,
while the Nasdaq recorded 52 new highs and 26 new lows.

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