Stock Indexes Slip on Weakness in Megacap Technology Stocks

Earnings Reports - 173 S&P 500 companies are reporting earnings this week, with Apple and Amazon.com reporting after Thursday's close [1] - 84% of the S&P 500 companies that have reported so far have beaten forecasts, indicating a strong Q3 earnings season [1] - Q3 profits are expected to rise by 7.2% year-over-year, the smallest increase in two years, while sales growth is projected to slow to 5.9% year-over-year from 6.4% in Q2 [1] Market Reactions - US stock indexes are mixed, with Meta Platforms down over 12% and Microsoft down over 2% after failing to meet expectations, while Alphabet is up over 5% after beating Q3 earnings estimates [4][13] - The S&P 500 Index is down 0.42%, the Dow Jones is up 0.60%, and the Nasdaq 100 Index is down 0.95% [5] Trade Relations - President Trump and President Xi Jinping agreed to extend a tariff truce, which includes cutting fentanyl-related tariffs on Chinese goods from 20% to 10% and resuming purchases of US agricultural products by China [2] Interest Rates - Markets are pricing in a 72% chance of a 25 basis point rate cut at the next FOMC meeting on December 9-10, with an overall expected cut of 82 basis points by the end of 2026 [3] - The 10-year T-note yield has climbed to a 2.5-week high of 4.11%, putting pressure on stocks [3][9] Company-Specific Movements - Meta Platforms has raised its full-year total expense forecast, leading to a drop of over 12% in its stock price [14] - Sprouts Farmers Market reported Q3 net sales of $2.20 billion, below consensus, resulting in a decline of over 24% in its stock [15] - Chipotle Mexican Grill lowered its full-year sales forecast for the third time this year, leading to a drop of over 17% [16] - Guardant Health raised its full-year revenue forecast to $965 million-$970 million, resulting in a stock increase of over 32% [18] - C.H. Robinson Worldwide reported Q3 adjusted EPS of $1.40, above consensus, and announced a $2 billion share repurchase program, leading to an increase of over 18% in its stock [19]