(Reuters) - The Nasdaq Composite was on track to post its third straight session of more than 1 percent declines for the first time in three years, as disappointing forecasts from technology and internet companies sparked growth worries.
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., July 27, 2018. REUTERS/Lucas Jackson
The technology index .SPLRCT tumbled 2.22 percent as underwhelming results from Facebook (FB.O), Twitter (TWTR.N) and Intel (INTC.O) sparked fears about future growth for the sector that has led the equity market to record highs.
The so-called FAANG group also dropped. Facebook slid 4.7 percent and Netflix (NFLX.O), whose results also disappointed, sank 5.7 percent. Amazon (AMZN.O) and Alphabet (GOOGL.O), both of which had reported healthy results, fell 2.8 percent and 2.2 percent, respectively.
Apple (AAPL.O), which is due to report earnings after the bell on Tuesday, was down 0.9 percent.
“When you see the market leaders pull back it’s going to weigh on the entire market. We’re starting to see profit taking in a lot of these tech companies and investors are getting out of growth stocks,” said Shawn Cruz, manager, trader strategy at TD Ameritrade in Chicago.
“Since Apple is the last FAANG stock we are going to hear from, I think we need a really good report or we are going to see weakness in the market.”
At 13:05 a.m. EDT the Dow Jones Industrial Average .DJI was down 139.87 points, or 0.55 percent, at 25,311.19, the S&P 500 .SPX was down 20.39 points, or 0.72 percent, at 2,798.43 and the Nasdaq Composite .IXIC was down 124.78 points,
