Nasdaq drops more than 1% as Intel and Twitter lead tech rout – CNBC

Shares of Facebook and Apple followed Intel and Twitter lower, dropping 0.8 percent and 1.7 percent, respectively. Netflix and Alphabet, meanwhile, both declined more than 2 percent.

Thus far, over 50 percent of S&P 500 companies have reported earnings. Of those companies, 79.8 percent have reported better-than-expected earnings, according to data from FactSet.

The Commerce Department said the U.S. economy grew by 4.1 percent in the second quarter, in line with analyst expectations. In recent days, White House officials have been indicating the reading will be strong. “You’re going to get a very good economic growth number tomorrow. Big,” White House economic advisor Larry Kudlow said ahead of the release.

“While we may be late in the game when it comes to our economic expansion, we’re likely not in the last inning, and I think we see that in today’s numbers,” said Mike Loewengart, vice president of investment strategy at E-Trade. “Sure the trade war has begun to take its toll, but our economic fundamentals continue to be solid.”

President Donald Trump touted the strong number on Friday, saying in a tweet the figure was “GREAT.” Trump later said in a news conference that “we’re going to go a lot higher” than 4.1 percent GDP growth.

The market’s initial reaction to the data was muted, however, with stock futures briefly paring gains.

“The number at 4.1 percent is strong, but the whisper number was higher than that,” said Jeff Zipper, managing director of investments at U.S. Bank Private Wealth Management. “I think that’s why you got the non-reaction in the market to it.”

—CNBC’s Jeff Cox contributed to this report.


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