The stock market recovered from a sharp drop, but the Nasdaq Composite index fell 0.66 percent from a record high thanks to Alphabet Inc. and other weak technology stocks. The S&P 500 index was up 0.1 percent while the Dow gained 0.15 percent.
The Entrepreneur Index™ fell 0.7 percent with the tech sector being the biggest drag on performance.
Shares in Alphabet Inc. had their worst day since 2012, after the company missed revenue estimates for the first quarter. The stock was down 7.7 percent from a record high on Monday after the internet giant reported results after the market close.
The drop puts Alphabet’s return for the year at 14.7 percent, the lowest among the FAANG stocks (Facebook, Amazon, Apple, Netflix and Alphabet — formerly Google), that have propelled the ten year bull market forward. The company blamed “product changes in ads” for the shortfall, but didn’t provide further explanation. Wall Street analysts resumed their calls for better disclosures from the company, famous for being one of the least transparent of the major technology companies.
Much of the rest of the tech sector struggled as well. Facebook (-0.71 percent), Amazon.com (-0.61 percent) and Netflix (-0.35 percent) were all down. Adobe Systems Inc. (1.09 percent) and chip-makers Analog Devices (2.07 percent) and NVIDIA Corp. (0.93 percent) were notable exceptions in the sector.
The REIT sector posted some of the biggest gains on the Entrepreneur Index™ . Interest rates were down and most of the REIT market responded positively. Essex Property Trust and Boston Properties had the biggest gains among the nine REITs on the index, rising 1.75 percent and 1.65 percent respectively. Mall REIT Macerich Company, however, fell 2.93 percent. With many of its large retailer tenants struggling, Macerich has also struggled. It is down 7.1 percent this year and 30.2 percent in the last twelve months.
Other good gains on the index included Fedex Corp. (1.52 percent), Chipotle Mexican Grill (1.5 percent), insurer Aflac Inc. (1.33 percent) and Ford Motor Co. (1.26 percent).
Other notable declines included Wynn Resorts (-2.9 percent), Tesla (-1.15 percent) and Simon Property Group (-1.17 percent).
