Big-tech stocks led the morning advance for new highs on the major market averages, but reversed to turn sharply lower in afternoon action.
X The Nasdaq, up 0.6% in the morning to an all-time best, traded down 1.3%, with Apple (AAPL), Netflix (NFLX), Alphabet (GOOGL) and many others retreating. The S&P 500 turned down 0.5% while the Dow Jones industrial average were just below break-even. Volume in the stock market today was higher across the board.
Some companies reporting quarterly results started out strong but then staged negative reversals. Mastercard (MA) popped almost 1% in the first five minutes of trade. Then the stock reversed to a 3.1% loss. Mastercard reported revenue and earnings that topped the Street's consensus estimates.
Also, Mastercard CEO Ajay Banga announced a takeaway from Visa (V). Kroger (KR), which currently co-brands its credit cards with Visa, will switch to Mastercard. New cards will be issued by the spring of 2018.
Biotech Celgene (CELG) sparked 0.9% higher at the open but then reversed to a loss of 2.6%. Celgene reported a small beat on earnings and revenue. The stock is out of buy range from a June breakout past a 127.74 buy point.
Another biotech, Alexion Pharmaceuticals (ALXN), gapped up more than 8% in the first five minutes of trade but then pared that gain to 2% by early afternoon. Alexion reported a 38% increase in earnings vs. the year-ago quarter. This topped the Street's consensus target by about 24%. Revenue rose 21%, also beating views.
Facebook (FB) advanced as much as 6% in the morning and lost more than half of its advance. Facebook reported after Wednesday's close, trouncing earnings views by about 17% and revenue by about 4%.
Blue chips were mostly down, despite the gain in the Dow Jones industrial average. Verizon (VZ) gapped up 7%, supporting the 30-stock Dow positive. The company beat profit estimates with this morning's Q2 report. Verizon pays a dividend with an annualized yield of 5.2%, but earnings are expected to slip 3% this year and rise only 1% next year. Estimates may be revised after today's results, though.
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