Dow drops 942 points as S&P, Nasdaq turn negative for October

Boeing to lay off about 7,000 as COVID-19 crimps business

Stocks sank on Wednesday as COVID-19 fears gripped investors across the globe as Germany and France announced new lockdown measures.

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All three of the major averages saw the worst week since March with the Dow Jones Industrial Average down over 940 points or 3.4%, while the Nasdaq Composite and S&P 500 declined more than 3.5%. Both the S&P 500 and Nasdaq are now negative for the month of October.

Oil slipped over 5% to the $37 per barrel level, registering its worst session since September. Gold traded down marginally to $1,876.20 an ounce, down 0.5%.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES29910.37+37.90+0.13%
I:COMPNASDAQ COMPOSITE INDEX12205.846315+111.44+0.92%
SP500S&P 5003638.35+8.70+0.24%

WALL STREET RECAP: HIGHLIGHTS

Dow members Microsoft and Chevron paced the drop along with Boeing after it announced it will be cutting workers as it reported its fourth straight quarterly loss as the pandemic continues to hurt business.

BOEING TO SLASH WORKFORCE

TickerSecurityLastChangeChange %
BABOEING COMPANY216.50-1.11-0.51%
CVXCHEVRON CORP.91.31-0.83-0.90%
MSFTMICROSOFT CORP.215.23+1.36+0.64%

SECOND COVID-19 STOCKPILING WAVE COMING

Along with Europe, the U.S. is also seeing new coronavirus cases rise, hitting 68,967 on Tuesday, an all-time high, according to a Wall Street Journal analysis of Johns Hopkins data.

Airlines sank on the developments.

TickerSecurityLastChangeChange %
DALDELTA AIR LINES INC.41.06-0.23-0.56%
AALAMERICAN AIRLINES GROUP INC.14.98+0.04+0.27%
UALUNITED AIRLINES HLDG.45.30-0.34-0.74%
JBLUJETBLUE AIRWAYS15.71-0.11-0.70%

More than 8.7 million people in the U.S. have contracted COVID-19, resulting in more than 226,000 deaths, according to Johns Hopkins data.

EARNINGS BARRAGE

Wednesday saw a slew of earnings data from some of the world's biggest companies.

TickerSecurityLastChangeChange %
GEGENERAL ELECTRIC COMPANY10.40-0.10-0.95%
UPSUNITED PARCEL SERVICE INC.168.89-1.61-0.94%

General Electric reported better-than-expected results and said free cash flow would be at least $2.5 billion in the fourth quarter. The stock was one of the few bright spots in the down market.

UPS reported earnings of $2.28 a share on $21.2 billion in revenue. Analysts had been expecting earnings of $1.86 a share and $20.13 billion in sales.

TickerSecurityLastChangeChange %
MAMASTERCARD INCORPORATED339.07-2.25-0.66%

Mastercard fell after it said travel spending impacted its results. Visa, eBay and Ford will post results after the closing bell.

TickerSecurityLastChangeChange %
VVISA INC.211.00+0.11+0.05%
FFORD MOTOR COMPANY9.09+0.01+0.11%
EBAYEBAY INC.51.34+0.89+1.76%

Nearly 40% of the companies in the S&P 500 have reported calendar third-quarter results, with more than 80% of them beating top- and bottom-line expectations.

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On Wednesday, Microsoft Corp. reported better-than-expected results as well, but its outlook was weaker than anticipated, sending shares lower by about 2%.

TickerSecurityLastChangeChange %
MSFTMICROSOFT CORP.215.23+1.36+0.64%

TECH ON THE HILL

TickerSecurityLastChangeChange %
FBFACEBOOK INC.277.81+2.22+0.81%
TWTRTWITTER INC.46.59+0.16+0.34%
GOOGLALPHABET INC.1,787.02+22.89+1.30%

The CEOs of some of the world's largest companies got grilled by U.S. lawmakers on Wednesday, as Facebook's Mark Zuckerberg, Jack Dorsey of Twitter and Sundar Pichai, of Google parent Alphabet, took tough questions from the Senate Commerce Committee on how they deal with political content online.

FACEBOOK'S ZUCKERBERG NOT AWARE OF EMPLOYEE WHO WORKED FOR BIDEN

During the Section 230 hearing, Zuckerberg, during the Q&A, said he was "not aware" that a Facebook election integrity official used to work as a policy adviser to former Vice President Joe Biden.

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