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Lyft tanks 36.5% on weak outlook
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Energy firms climb on higher crude prices
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Indexes: Dow up 0.22%, S&P 500 down 0.13%, Nasdaq down
0.96%
(Adds comments, details; updates prices)
By Shreyashi Sanyal, Johann M Cherian and Carolina Mandl
Feb 10 (Reuters) - The Nasdaq fell on Friday as megacap
growth stocks came under pressure after Treasury yields pointed
to higher interest rates and shares of ride-hailing firm Lyft
plunged following a downbeat profit forecast.
The Nasdaq eyed its first weekly fall this year,
while the S&P 500 and the Dow were set to clock
declines for a week dominated by hawkish commentary from U.S.
Federal Reserve officials and earnings reports from more than
half of the S&P 500 constituents.
Yields on the benchmark 10-year Treasury note rose to their highest in more than a month following an auction
on Thursday of 30-year bonds that saw weak demand. "Investors are wondering what the bond market is telling us
that economic indicators are not telling us," said Sam Stovall,
chief investment strategist at CFRA Research. "Higher bond
yields are going to more adversely affect the higher growth
technology companies."
The Russell 1000 Growth index that houses many large-cap growth names fell 0.58%. Lyft Inc plummeted 36.22%, on track for its biggest one-day percentage decline, as it lowered prices, raising concerns it was falling behind bigger rival Uber Technologies Inc . Uber shares dropped 3.97%. At 2:09 p.m. ET, the Dow Jones Industrial Average rose 73.76 points, or 0.22%, to 33,773.64, the S&P 500 lost 5.35 points, or 0.13%, to 4,076.15 and the Nasdaq Composite dropped 112.60 points, or 0.96%, to 11,676.98. The 11 major S&P 500 sectors showed mixed performances. The energy sector jumped 3.59% as oil prices climbed on Russia's plans to cut crude supplies, while the consumer discretionary sector fell 1.68%. More than half of the firms listed on the S&P 500 have reported earnings, with 69% beating profit estimates for the quarter, according to Refinitiv data. U.S. consumer sentiment improved further in February month-on-month, but households expected higher inflation to persist over the next 12 months, the University of Michigan's preliminary February reading showed. After U.S. equities were rattled over the week by strong jobs data, investors are waiting for January consumer inflation data next week for clarity on the Fed's rate-hike path. Declining issues outnumbered advancing ones on the NYSE by a 1.20-to-1 ratio; on Nasdaq, a 1.60-to-1 ratio favored decliners. The S&P 500 posted three new 52-week highs and no new lows; the Nasdaq Composite recorded 27 new highs and 58 new lows. (Reporting by Shreyashi Sanyal and Johann M Cherian in Bengaluru; Editing by Saumyadeb Chakrabarty, Sriraj Kalluvila, Shounak Dasgupta and Deepa Babington)
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