Investing.com - The S&P 500 closed lower Thursday as gains in energy were offset by a slump in tech, led by a plunge in Facebook.
The Dow Jones Industrial Average rose about 0.44%. The S&P 500 fell 0.30%, while the Nasdaq Composite fell about 1.01%.
Facebook (NASDAQ:FB) stock posted its biggest-ever one-day drop falling nearly 19% after it reported disappointing earnings and guidance on Wednesday, prompting investors to abandon one of their most popular holdings.
More than 70% of Facebook is owned by large institutional investors, according to the company's most recent filings at the Security and Exchange Commission (SEC). The fallout from Facebook's selloff rattled other tech stocks, dragging the broader tech sector lower as both Twitter (NYSE:TWTR) and Snap NYSE:SNAP) stocks came under pressure.
Rising energy and industrial stocks, meanwhile, helped steady the broader market as the latter was supported by easing U.S.-Europe trade tensions.
President Donald Trump and the European Commission chief agreed to work together to resolve U.S. tariffs on steel and aluminum and Europe's retaliatory duties.
Energy stocks rallied as U.S. oil prices remained on track to snap a two-week losing streak after settling higher Thursday as disruptions in Saudi oil shipments supported sentiment.
On the New York Mercantile Exchange crude futures for September delivery gained 31 cents to settle at $69.61 a barrel.
On the corporate earnings front, Comcast reported mixed quarterly results, as earnings beat but revenues missed consensus. Comcast (NASDAQ:CMCSA) stock closed about 4% higher, however, as investors were impressed by the company's growth in its broadband business.
McDonald’s (NYSE:MCD) closed nearly 2% lower as easing U.S. sales growth for the second quarter overshadowed higher earnings and revenue that beat estimates. McDonald's reported that sales at U.S. locations that have been open at least a year grew by 2.6%. That missed analysts' expectations for 3%.
After the bell, Amazon (NASDAQ:AMZN) stock rose as the company reported a profit of $5.07 per share. It was not immediately clear if that was comparable to the $2.47 per share analysts expected. Sales for the quarter missed expectations and third-quarter sales guidance was also below forecast.
In economic news, a trio of economic reports showing rising initial jobless claims, a widening trade deficit and slower durable goods orders did little to sway investor optimism on the U.S. economy ahead of GDP data due Friday.
Ahead of the GDP data, President Trump’s chief economic adviser Larry Kudlow said GDP will likely be a "very good" number, according to Fox Business Network.
Top S&P 500 Gainers and Losers Today:
Advanced Micro Devices Inc (NASDAQ:AMD), Arconic (NYSE:ARNC), DR Horton (NYSE:DHI) were among the top S&P 500 gainers for the session.
Nielsen Holdings (NYSE:NLSN), Facebook (NASDAQ:FB) Mohawk Industries (NYSE:MHK), were among the worst S&P 500 performers of the session.