US stocks dropped, capping their biggest weekly rout since March, after earnings from the largest tech companies disappointed investors concerned that a slowing economy will damp profit.
The Nasdaq 100 declined about 2.6 per cent after Apple's iPhone sales and Twitter's user growth both missed estimates, though Google parent Alphabet jumped after reporting a rebound in advertising. The S&P 500 Index dropped 5.6 per cent over the past five days, the worst-ever loss in the week leading to a presidential election. Ten-year Treasury yields jumped to the highest since June.
Twitter posted its worst day since 2014 after the company's third-quarter results showed fewer new users than analysts had projected. Shares of the social media company plunged 21 per cent after saying it added just a million new daily users in the third quarter, 8 million fewer than analysts estimated, despite the return of live sports and a US election campaign that were expected to drive people to the platform. Friday's drop erased $8.8 billion (Dh32bn) in market value. However, the stock is still up 88 per cent since its recent low on March 18.
Since becoming the first American company to surpass $2 trillion in market value in August and peaking last month, Apple has lost $450bn, wiped out by a 19 per cent slump. The latest bout of selling — a 5.6 per cent drop on Friday — took out more than $120bn alone. Apple is now worth $1.85tn and still the most valuable US company, but the amount shaved from its ledger since its September peak is more than the entire market cap of Visa, the seventh largest member of the S&P 500, and greater than the value of Thailand’s stock exchange.
The tech slump, coming after an unprecedented run higher this year, is adding to volatility that’s likely to remain elevated heading into next week’s US election. Global equities posted the worst weekly decline since March as lockdown measures in some countries and the lack of an agreement on US stimulus dented sentiment. New US coronavirus cases topped 89,000, setting a daily record.
“Today’s action is a reminder of just how fickle markets can be,” said Yousef Abbasi, global market strategist at StoneX. “The earnings themselves were not awful, but the market has priced tech to near perfection and thus one fly — maybe even a fruit fly — in the ointment could perpetuate a sell-off.”
In Europe, equities edged higher. Tech stocks also faltered as did Danish drug giant Novo Nordisk, whose earnings disappointed analysts. Banks rose after Spain’s BBVA and the UK’s NatWest Group reported improved pictures for soured loans.
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Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
How to come clean about financial infidelity
- Be honest and transparent: It is always better to own up than be found out. Tell your partner everything they want to know. Show remorse. Inform them of the extent of the situation so they know what they are dealing with.
- Work on yourself: Be honest with yourself and your partner and figure out why you did it. Don’t be ashamed to ask for professional help.
- Give it time: Like any breach of trust, it requires time to rebuild. So be consistent, communicate often and be patient with your partner and yourself.
- Discuss your financial situation regularly: Ensure your spouse is involved in financial matters and decisions. Your ability to consistently follow through with what you say you are going to do when it comes to money can make all the difference in your partner’s willingness to trust you again.
- Work on a plan to resolve the problem together: If there is a lot of debt, for example, create a budget and financial plan together and ensure your partner is fully informed, involved and supported.
Carol Glynn, founder of Conscious Finance Coaching
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
