Stocks Opened Lower as Tech Earnings Failed to Impress

U.S. stocks opened lower on Friday after the latest batch of corporate earnings results suggested a grim outlook for the current quarter. The Dow Jones Industrial Average lately fell 435.83 points, or 1.79%, to 23,909.89. The S&P 500 slipped 56.81 points, or 1.95%, to 2,855.62. The Nasdaq Composite declined 178.70 points, or 2.01%, to 8,710.85.

U.S. oil futures erased an early decline to press higher Friday, extending this week’s bounce after plunging last month in the face of a growing global glut of crude caused by the COVID-19 pandemic. West Texas Intermediate crude for June delivery was flat at $18.84 a barrel.

Amazon (AMZN) posted first-quarter sales that topped consensus expectations and grew over last year, but warned that $4 billion in expected coronavirus-related costs could drag operating income negative to the tune of $1.5 billion. Amazon’s net sales of $75.5 billion were up 26% over last year. However, net income of $2.5 billion, or $5.01 per share, fell 30% compared to the $3.6 billion, or $7.09 per share in the first quarter of 2019.

Apple reported its Q2 2020 earnings on Thursday, with services and wearables buoying the company’s bottom line amid the coronavirus pandemic. For the quarter, iPhone revenue was off 7.2%, from $31 billion in Q2 2019 to $29 billion in Q2 2020. But Services sales were up from $11.5 billion to $13.3 billion in the quarter.