Market Wrap: Wall Street Drops on Tech; Indexes Up for Month

Markets React To Fed Announcement On Interest Rates
Spencer Platt/Getty Images
By Caroline Valetkevitch

NEW YORK -- U.S. stocks sold off Thursday, led by a drop in the Nasdaq, as Apple shares declined and results in tech and biotech names disappointed.

Upbeat economic reports added to uncertainty about the outlook for interest rates, a day after data showed the U.S. economy slowed to a crawl in the first quarter and the Federal Reserve pointed to weakness in the labor market and other areas of the U.S. economy.

Despite the day's decline, all three major indexes posted slight gains for April.

The Nasdaq biotech index dropped 3.1 percent, led by a 4.5 percent fall in Celgene (CELG), which reported lower-than-expected quarterly revenue.

%VIRTUAL-pullquote-We didn't get a rally off of the Fed statement and that kind of set the stage for this morning.%The decline marked a fifth day of losses for the biotech index, bringing losses in the index to 8.1 percent for the week so far. The Nasdaq fell for its fourth straight session, while the S&P tech index fell 1.6 percent, the day's worst-performing sector.

Apple (AAPL) was down 2.7 percent at $125.15 and was the biggest drag on the Dow, S&P 500 and the Nasdaq. The company limited the availability of the Apple Watch after a key component was found to be defective, according to The Wall Street Journal.

"We didn't get a rally off of the Fed statement and that kind of set the stage for this morning," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"It didn't add any clarity. That kind of tied in with not a lousy earnings season but a flattish earnings season. There's just not a compelling reason to buy."

The Dow Jones industrial average (^DJI) fell 195.01 points, or 1.1 percent, to 17,840.52, the Standard & Poor's 500 index (^GSPC) lost 21.34 points, or 1 percent, to 2,085.51 and the Nasdaq composite (^IXIC) dropped 82.22 points, or 1.6 percent, to 4,941.42.

For the month, the Dow was up 0.4 percent, the S&P 500 gained 0.9 percent and the Nasdaq rose 0.8 percent.

The day's data included a report showing the number of Americans filing new claims for jobless benefits tumbled to a 15-year low last week, which suggested the economy is picking up.

Stocks Making Moves

Among other decliners, Yelp (YELP) shares slumped 23.2 percent to $39.39 a day after the consumer review website operator forecast second-quarter revenue below analyst expectations.

Baidu (BIDU) declined 8.5 percent to $200.28 after China's dominant Internet search engine provider posted its slowest quarterly revenue growth rate in almost seven years.

S&P 500 earnings for the first quarter now are forecast to have increased 1.1 percent from a year ago, Thomson Reuters (TRI) data showed, while revenue is forecast to be down 3.2 percent.

Declining issues outnumbered advancing ones on the NYSE by 2,355 to 693; on the Nasdaq, 2,131 issues fell and 647 advanced.

The benchmark S&P 500 index posted six new 52-week highs and three new lows; the Nasdaq composite recorded 39 new highs and 91 new lows.

About 7.8 billion shares changed hands on U.S. exchanges, compared with the 6.3 billion daily average for the month to date, according to data from BATS Global Markets.

What to watch Friday:
  • Automakers release vehicle sales for April.
  • At 10 a.m. Eastern time, the Institute for Supply Management releases its manufacturing index for April, 10 a.m. and the Commerce Department releases construction spending for March.
Earnings Calendar
These selected companies are scheduled to release quarterly financial results:
  • Aon (AON)
  • Brink's Co. (BCO)
  • Calpine (CPN)
  • Charter Communications (CHTR)
  • Chevron (CVX)
  • Clorox Co. (CLX)
  • Cooper Tire & Rubber Co. (CTB)
  • CVS Health (CVS)
  • Duke Energy (DUK)
  • FirstEnergy (FE)
  • ITT (ITT)
  • Legg Mason (LM)
  • Moody's (MCO)
  • Newell Rubbermaid (NWL)
  • United States Cellular (USM)
  • V.F. Corp. (VFC)
  • Weyerhaeuser Co. (WY)
Ultimate Cheapskate's 10 Ways to Save Money on Travel
See Gallery
Market Wrap: Wall Street Drops on Tech; Indexes Up for Month
If you're flexible and love the sheer adventure of travel, you'll also love Kayak's Explore tool as much as I do. It instantly maps all airfares available within your specified budget to destinations worldwide. You enter the month or season you want to travel -- and the maximum amount you have to spend on a ticket -- and it shows you all the places you can fly to for that amount or less. You can even search by the activities or weather you're looking for in a destination. I think that Kayak Explore should be the first stop when planning a true travel adventure.
The best travel agent you can have isn't a travel agent at all, but rather someone who lives in the place you want to visit. Sure, it would be great if they invited you to stay with them, but just their knowledge and advice can save you a bundle and help you really enjoy and get to know a place. Thanks to the internet, you can now get to know someone almost any place on the planet before you even leave home. Social network sites like,, and can put you in touch with people living in the places you'll be traveling to, as well as fellow travelers.
In the spring and fall, many cruise ship companies "reposition" their fleets to different parts of the world to meet seasonal market demands. For example, ships that have been cruising during the winter months off the coast of Central and South America might head north for the summer cruising season in Alaska.

That means flexible travelers can go along on a one-way ride for a fraction of the cost per day compared to most regular cruises. Of course, you'll have to find your own way home -- or maybe just hang out at the terminus point for six months and catch a repositioning cruise in the opposite direction in the fall.
Putting in a few hours of work during your travels can not only score you a free place to stay (and maybe some meals, too), but it can be an interesting experience and a good way to meet locals and fellow travelers alike. Websites like and list part-time, (usually) unpaid work opportunities all around the world that can nicely fit a flexible traveler's schedule, lifestyle and budgetary limitations.

And by joining, you're eligible to apply for housesitting gigs worldwide, giving you a free place to stay in exchange for watching over someone's house (and, usually, their pets) while they're away.
With most airlines now charging a fortune for checked bags, keeping luggage to a minimum is a must. Plus, I've always found that traveling light makes for a more enjoyable trip. My packing rule is simple: Unless you know that you're absolutely going to need and use an item, don't bring it with you if it's something that you can buy during your travels, should the need arise. Pack your bags a couple of days before you leave home, and then drive to a shopping mall and haul them around for an hour or so (or until the mall cops stop you); I'll bet after that you'll discover at least a few things you can just as soon leave at home. And after your trip, "audit your luggage," making a note of things you regret having brought with you so you won't make the same mistake next time.
If you're going to drive a long distance in a relatively short period of time, in the long run the most cost-effective option might be to rent a car rather drive your own. Since most rental car companies offer unlimited mileage, when you factor in the cost of wear and tear on your own car (i.e. "reduced lifespan"), renting a car is usually the best option for trips where you'll drive, say, a thousand or more miles during a week.

Plus, you might be able to rent a car that's more fuel-efficient than your own, saving even more. And remember that the insurance coverage you carry on your own car probably covers you when you rent a car for non-business use, so you can skip the expensive insurance offered by the rental company (but check your insurance policy first, just to make sure).
Picking up snacks at gas stations and convenience stores as you travel can add up to a very unappetizing expense during the course of even a short road trip. Instead, stock up on drinks and snacks before you leave home or at grocery stores during your travels. Even if you're flying somewhere, investing in an inexpensive cooler once you've arrived at your destination is almost guaranteed to more than pay for itself while you're there. And if you imbibe, don't forget to BYOB ("Bring Your Own Booze"); the markup on beer, wine and liquor in most bars and restaurants -- even in non-touristy areas - is typically 400 percent or more.
If I buy souvenirs at all during my travels, I always look for something that's practical -- something that I'll actually use -- rather than waste money on some tourist tchotchke that will immediately go into cold storage as soon as I get home. Clothing, food delicacies, artwork/home décor items or a CD of local music are among my favorite souvenirs. And I always check out thrift stores, flea markets and even yard sales when I travel, which are great places to finding interesting local items for dirt cheap. I once bought a ceramic wall hanging at a thrift store in Los Angeles for $8, which turned out to be by a deceased California artist and appraised at $1,400 when I got it home.
When I travel by car, I often take my own bicycle with me, and when I fly someplace where I plan to stay for at least a few days, one of my first stops is at a local thrift store to pick up an inexpensive used bike. I can't even begin to calculate how much this has saved me in taxi fares, car rentals, and even public transportation over the years. Plus, it's a great way to get to see and know a place, while squeezing in a little workout at the same time.

And when it's time to fly home, you can either donate the bike back to the thrift store for a tax deduction, or maybe make some kid's day by asking him if he wants a free bike.
Other than maybe an airline ticket, chances are that lodging will be most travelers' single largest expense. Use websites like and to find privately owned apartments, homes and rooms for rent; most include access to a fully equipped kitchen, so you can save even more by cooking some of your own meals.

Hostels ( provide inexpensive dorm-style accommodations -- although many now offer private rooms as well -- and are open to travelers of all ages. And register with to tap into a worldwide network of fellow travelers who will let you crash on their couch (or often in a spare bedroom) for free!
Read Full Story