US: S&P 500 retreats from record as market digests more earnings

[NEW YORK] The S&P 500 retreated from its record high early on Friday as investors weighed data showing a surge in US personal income and mostly solid earnings results from large companies.

Personal income surged 21.1 per cent in March and personal consumption expenditures rose 4.2 per cent, boosted by a new round of government aid under President Joe Biden's US$1.9 trillion American Rescue Plan.

In earnings news, Amazon rose as it joined other tech giants in reporting blowout quarterly earnings in the wake of the coronavirus pandemic.

Social media company Twitter plunged 12.5 per cent after announcing weaker-than-expected earnings and disappointing user growth.

About 25 minutes into trading, the Dow Jones Industrial Average dropped 0.3 per cent to 33,960.01.

The broad-based S&P 500 fell 0.4 per cent to 4,194.14, while the tech-rich Nasdaq Composite Index shed 0.5 per cent to 14,015.93.

Analysts say earnings have generally been strong, with companies benefiting from the gradually reopening economy and expressing optimism about the coming months.

However, investors say there may not be much upside left for stocks in the near-term after indices repeatedly posted records this year in anticipation of the recovery.

AFP