Tech Earnings, Bank Woes Lead to Mixed Market Day

Key TakeAways 

• US equity indices ended April 26, 2023 mixed, with strong results from tech companies fueling renewed concerns about the banking sector.

• The Nasdaq gained about 0.5%, while the Dow and S&P 500 closed lower in Wednesday's session.

• Shares of Microsoft (MSFT) moved higher on strong cloud revenue, despite news that U.K. regulators blocked its acquisition of Activision Blizzard (ATVI). {alertSuccess}

US equities were mixed as solid tech earnings pulled from the banking sector and concerns about a possible recession. Markets faded in the afternoon, leaving the Dow and S&P 500 in the red and the Nasdaq up half a percent.

Most of the Dow's stocks fell, led by shares of Amgen ( AMGN ), Home Depot ( HD ), Honeywell ( HON ), and Merck ( MRK ) , which all sank more than 2%. After plunging nearly 50% on Tuesday, shares of First Republic Bank (FRC) plunged 30% on Wednesday on concerns whether the struggling bank can find ways to shore up its deteriorating financial condition.

Solar shares declined on a demand warning from Enphase Energy (ENPH). Shares of Old Dominion Freight Line (ODFL) tumbled 10% as the transportation company's profit and sales came in below analysts' estimates. Shares of Activision Blizzard ( ATVI ) declined after U.K. regulators blocked Microsoft's ( MSFT ) $68.7 billion acquisition of the video game maker.

Microsoft Stock Profit

Microsoft (MSFT) investors shrugged off Activision news and sent shares higher on the software giant's cloud revenue, guidance, and upbeat comments about its artificial intelligence (AI) products. Shares of Amazon (AMZN) gained on optimism about demand for its cloud services. Shares of Meta Platforms (Meta) rose during the regular session, and they are rising in extended trading after the social media firm's earnings report was released.

Recession fears pushed oil futures lower. Gold prices fell. The yield on the 10-year Treasury note was higher. The US dollar declined against the euro, pound and yen. The leading cryptocurrency reversed earlier gains and traded lower.