Markets Fall on Earnings and Profit Worries

By
Terry Lane
Terry Lane
Full Bio
Terry has 25 years experience in journalism and communications, reporting on a range of topics that include personal finance, telecommunications, Congress, government regulations, and criminal justice. He has also worked on technology, energy, and environmental policy issues as a congressional press secretary and owned and published a local community newspaper in North Carolina.
Learn about our editorial policies
Published April 20, 2023
Table showing the performance of major U.S. financial indexes on April 20, 2023

Investopedia

Key Takeaways

  • U.S. stocks moved lower on April 20, 2023, as a few companies reported lackluster earnings results and Fed officials indicated the possibility of more rate hikes.
  • The tech-heavy Nasdaq posted the largest declines, down 0.8%, while the S&P 500 and the Dow lost 0.6% and 0.3%, respectively.
  • Stocks in the energy sector dropped on a decline in oil prices.

U.S. equities fell after several companies reported results that missed estimates and Fed officials hinted at more interest rate hikes. The Nasdaq dropped 0.8%, while the S&P 500 fell 0.6% and the Dow lost 0.3%.

Tesla (TSLA) shares tumbled almost 10% after the company reported that price cuts hit its profits. Shares of other electric vehicle makers also lost ground, including Lucid (LCID), Rivian (RIVN), Ford (F), and General Motors (GM).

The technology sector was one of the worst-performing sectors, as shares of Seagate Technology (STX) plunged more than 9% after it missed earnings estimates. Shares of AT&T (T) declined more than 10% on subscriber data, while shares of Verizon (VZ) and T-Mobile (TMUS) also moved lower.

One of the best-performing stocks on the S&P 500 was Lam Research (LRCX), as shares of the semiconductor company rose more than 7% after it beat earnings estimates. Shares of DR Horton (DHI) gained more than 5% after the home builder beat earnings expectations and reported higher-than-expected sales, despite higher mortgage rates.

Declining oil prices helped send the energy sector lower, with ConocoPhillips (COP) shares down 1.4%. Shares of ExxonMobil (XOM) and Occidental Petroleum (OXY) were lower as well.

Prices of major cryptocurrencies fell, with the price of Bitcoin (BTC/USD) down 2%. The U.S. dollar was flat against the euro and lost ground to the yen. The yield on the 10-year Treasury note declined.

Table showing the S&P 500 stocks with the biggest gains and losses on April 20, 2023

Investopedia
Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service
Name
Description