On Friday, Wall Street closed lower as investors reacted to a report of slowing U.S. labor market growth and grappled with mixed earnings results. All three major indexes experienced weekly losses, primarily influenced by Apple’s disappointing earnings forecast.

Apple (AAPL) Shares Dip, Amazon (AMZN) Provides a Silver Lining

Apple’s shares witnessed a significant 4.8% decline, marking its biggest daily percentage drop since September 29, 2022. The plunge had a substantial impact on the S&P 500, dragging it down by about 16 points. The dip followed the tech giant’s forecast of a continued slide in sales.

Despite this, Amazon emerged as a partial counterweight to Apple for the S&P 500 and Nasdaq. Amazon’s shares surged 8.3% after the online retailer issued an upbeat third-quarter outlook, contributing 11 points positively to the S&P 500.

Bellwether Companies Stir Investor Jitters

Greg Bassuk, the CEO of AXS Investments in New York, emphasized that significant bellwether companies, like Apple and Amazon, have the potential to cause investor jitters. He, however, noted that the overall trajectory of the economy and corporate earnings seemed positive as August approached.

Choppy Trading Session and Uncertainties

The trading session on Friday was volatile, with indexes rising in the morning before wavering and turning negative. Uncertainties surrounding geopolitical concerns, including the Ukraine war and issues with China, played a role in investor sentiment. Bassuk suggested that the decline on Friday was a result of investors resetting and positioning themselves for potential downside surprises.

Slowing Labor Market Growth

The Labor Department reported that U.S. employers added 187,000 jobs in July. However, data for June additions was revised lower to 185,000 jobs, signaling slowing growth. On a positive note, average hourly earnings rose 0.4% in July, matching expectations and contributing to a 4.4% year-on-year increase in wages.

Impact on Mega-cap Stocks and Tech Companies

The yield on the 10-year benchmark Treasury note edged lower after the jobs data, providing some support to megacap stocks. Following Amazon’s strong cloud business segment sales estimates, shares of other big tech companies, including Microsoft and Snowflake, experienced notable gains.

Weekly Declines and Earnings Reports

The Dow Jones Industrial Average fell 150.27 points, the S&P 500 lost 23.86 points, and the Nasdaq Composite dropped 45.18 points. The weekly percentage declines for the S&P and Nasdaq were the largest since March, with investors booking profits after five months of gains. As of Friday, 79.1% of the S&P 500 companies that reported quarterly earnings had surpassed autonomous expectations.

Notable Stock Movements

Carl Icahn-owned investment firm Icahn Enterprises shed 23.3% after halving its quarterly payout following accusations of operating a “Ponzi-like” structure by short-seller Hindenburg Research. Cybersecurity firm Fortinet tumbled 25.1% after cutting its annual revenue forecast. Tupperware shares rallied 35.5% after finalizing a debt restructuring agreement with its lenders. Amgen added 5.5% after reporting a higher quarterly profit on strong drug sales. DraftKings shares rose 5.8% following an improved fiscal year 2023 revenue outlook.

Closing Figures and Market Volume

Volume on U.S. exchanges was 11.39 billion shares. Advancing issues outnumbered declining ones on the NYSE by a 1.22-to-1 ratio and on Nasdaq by a 1.14-to-1 ratio. The S&P 500 posted 19 new 52-week highs and 11 new lows, while the Nasdaq Composite recorded 54 new highs and 91 new lows.

Despite the weekly losses, investors remain cautiously optimistic as they navigate mixed earnings reports and economic indicators, looking ahead to the coming weeks for clearer market direction.