Stocks start May on the wrong foot

spike

Flags fly at full staff outside the NYSE on April 09, 2020 in New York City.

Kena Betancur | Getty Images

Dow Jones Industrial Average drops 622 points

The Dow closed 622.03 points lower, or 2.55%, at 23,723.69. The S&P 500 fell 2.81% to 2,830.71. The Nasdaq Composite slid 3.20% to close at 8,604.95. Stocks slumped on Friday as shares of Amazon led the major indexes lower on the month’s first day of trading.

Amazon, Apple fall on quarterly announcements

Amazon shares fell 7.6% after it said it will spend all its second-quarter profits on its coronavirus response. The e-commerce behemoth also posted a first-quarter profit that missed analyst expectations. Apple also slid 1.6% after announcing flat revenue growth and not giving guidance for the current quarter amid the coronavirus pandemic. The possibility of another skirmish between China and the U.S. also pressured stocks after White House economic advisor Larry Kudlow said the Chinese will be held accountable for the coronavirus. 

‘Reopening’ trade takes a hit

Shares that would benefit from an economic reopening took a hit on Friday. Carnival shares dropped 12.39% while MGM Resorts closed 10.81% lower. Kohl’s slid 4.44%.

What happens next?

U.S. monthly car sales data are set for release on Monday.

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