The Dow fell in the wake of the global shutdown

U.S. stocks fell on Friday as concerns over a global IT outage eased, seeing Wall Street recover from a selloff that continued the Dow’s streak of gains and tech rout.

The Dow Jones Industrial Average (^DJI) fell 0.9%, while the blue-chip index fell more than 1%. The S&P 500 (^GSPC) fell 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.5%.

AI-focused chip stocks bear the brunt, with stocks facing weekly losses after a few sessions that saw a dip in technologies. Investors are shifting from the tech heavyweights that fueled the recent rally to swings and small caps, some benefiting more from interest-rate cuts.

Early in the morning, investors assessed the potential impact of an “unprecedented” failure on global computer systems, which grounded planes and hit banks, telecommunications and media companies. But concerns eased after CrowdStrike ( CRWD ) said it had found a fix for a glitch that affected systems based on Microsoft ( MSFT ) .

CrowdStrike shares fell as much as 20% in the outage, but pared losses of around 10% in afternoon trading. Shares of Microsoft – which has been working on problems with its Azure cloud services – were down less than 1%.

Meanwhile, Republican presidential candidate Donald Trump used his inauguration speech on Thursday to say he would “end the electric vehicle mandate on day one.” His comment comes as the market wakes up on “Trump trade” — the implications of his policies for assets if the former president takes the White House.

Shares of Tesla ( TSLA ) and other EV makers fell along with the broader market on Friday.

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Fri, Jul 19, 2024 at 1:14 pm EDT

Nvidia, Tesla lead losses on Nasdaq 100

The Nasdaq 100 (^NDX) fell roughly 1% to a session low on Friday.

EV maker Tesla ( TSLA ) fell more than 4%, while shares of chipmaker Nvidia ( NVDA ) fell more than 2%.

Other semiconductors fell, with Intel ( INTC ) down more than 5% and ASML ( ASML ) down 3%.

The Nasdaq 100 was down 1% by 1:00 p.m. on Friday.
Friday, July 19, 2024 at 12:30 PM EDT

Tesla fell 4% after Trump said he would end the ‘electric vehicle mandate’

Electric vehicle stocks were under pressure on Friday after former President Donald Trump criticized the Biden administration’s clean energy initiatives, calling them the “green new scam” during the Republican convention.

Trump said, “I will end the electric vehicle mandate on day one, saving the American automobile industry from total destruction.”

The comments were made despite approval from Tesla ( TSLA ) CEO Elon Musk. EV company shares fell as much as 4% on Friday. Rivian ( RIVN ) and Lucid ( LCID ) also fell more than 1%.

The Biden administration has no EV mandate, but critics point to the Environmental Protection Agency Auto rules aimed at reducing carbon emissions It was launched in March as a way to accelerate the mass adoption of electric vehicles.
Fri, Jul 19, 2024 11:51 AM EDT

Technology and consumer preferences lead to declines

Almost all S&P 500 sectors fell on Friday, with technology ( XLK ) and consumer discretionary ( XLY ) leading decliners.

The commodities sector ( XLB ) also fell 1%. All three major averages were in the red at 11:45 am ET.

Healthcare (XLV) was the only sector slightly higher.
Friday, July 19, 2024 at 11:00 am EDT

Netflix shares gain following quarterly results

Shares of Netflix ( NFLX ) rose higher at the open since late January after the streaming giant posted better-than-expected quarterly results before taking profits.

The number of Netflix subscribers grew 34% in the quarter, partially boosted by the elimination of the Basic plan in some markets.

Netflix rose as much as 3% in early trading before giving up those gains.
Fri, Jul 19, 2024 10:16 am EDT

CrowdStrike is down 10% following a global IT outage

CrowdStrike ( CRWD ) shares fell as much as 10% on Friday following an “unprecedented” failure of computer systems that affected everything from airlines to hospitals.

Earlier Friday, CrowdStrike CEO George Kurtz offered a solution to the glitch.

On social media site X, Kurtz wrote “CrowdStrike is actively working with customers affected by the vulnerability found in the Single Content Update for Windows hosts.”
Friday, July 19, 2024 at 9:32 am EDT

Stocks changed little after the global IT crash

Stocks were little changed on Friday as more details emerged about the global IT outage. Wall Street was struggling to recover from a selloff that left all major averages in the red on Thursday.

The Dow Jones Industrial Average (^DJI) fell 0.2% after falling more than 1% in the previous session.

The S&P 500 (^GSPC) hovered around the flatline, while the tech-heavy Nasdaq Composite (^IXIC) fell 0.2%.

Investors have been fleeing tech stocks this week, with AI-focused chip stocks leading the way.

Investors this morning assessed the impact of an “unprecedented” failure on computer systems working on CrowdStrike (CRWD) and Microsoft-based (MSFT) platforms.

CrowdStrike CEO George Kurtz says the glitch has been fixed. “CrowdStrike is actively working with customers affected by the vulnerability found in the Single Content Update for Windows hosts,” he said.
Fri, Jul 19, 2024 at 8:26 am EDT

From the phone: American Express CEO

Another solid quarter at American Express ( AXP ) will boost its marketing budget by $800 million to $6 billion this year, CEO Stephen Scarry told me by phone.

On whether he is thinking more carefully about the second half of the year because of the election, he said:

“If I was packing more caution, I wouldn’t have raised guidance. I wouldn’t have increased marketing and so on. I think we’ll be steady, and I think that’s the key point here. What the Fed is going to do in September, I’m certainly not going to raise rates, they may be lowered, I think you know, I think we’ll see whatever happens in the November election, I think nobody has any idea, really, this company has been around for 174 years with 30 presidents — we’ll get whatever we want. Should we pass.”
Fri, Jul 19, 2024 at 5:54 am EDT

In other news…

In unrelated news to Trump’s RNC speech, Hulk Hogan He tore his shirt in the show A few minutes ago and Cloudflare’s (NET) outage ruined life (and its share price) this morning…

Yahoo Finance’s Alexandra Canal Here we had Netflix’s earnings break last night. Shares fell slightly premarket, with some concern over third-quarter subscriber guidance.

Here’s what Jefferies technology analyst Brent Dill had to say on this front:

“We don’t think so [guidance is a problem]. Given the tremendous growth over the past 12 months through password sharing (+39M net adds), the slowdown in affiliate growth is not surprising. Notably, the 8M net additions in Q2 was the strongest Q2 reported by the company aside from Q2’20. Based on the content slate (Squid Game S2, NFL games) and better seasonality in Q4 vs. Q3, we expect Q4 supplemental growth to accelerate to 7.7M net additions.”

I understand.