S&P 500 gives up gains despite Microsoft-fueled rally in tech

Investing.com -- The S&P 500 fell Wednesday, giving up early-day gains despite a Microsoft-fueled jump in tech following better-than-expected quarterly results.

The S&P 500 fell 0.3%, the Dow Jones Industrial Average fell 0.6%, or 198 points lower, and the Nasdaq rose 1%.

Microsoft Corporation (NASDAQ:MSFT) rallied 7% after reporting quarterly reported third-quarter results that topped Wall Street estimates as its Azure cloud business held up better than expected at a time when many were worried about the impact from a slowdown in enterprise spending.

“The star of the report and the focus of the Street was Azure revenue growth of 31%," Wedbush says, adding that the tech giant’s guidance for Q4 was “solid and much better than feared.”

Alphabet (NASDAQ:GOOGL), meanwhile, also delivered better-than-expected quarterly results as its core Google search business performed better than feared, but concerns about the tech giant’s plan to boost spending and hiring weighed.

The positive results from Alphabet provided a positive look through to Meta's results due after the market close on Wednesday.

“We see potential upside to our modestly above-consensus $27.8B 1Q23 revenue given the historical relationship between YouTube and Meta sequential ad revenue growth,” UBS said in a note.

Beyond tech, Boeing Co (NYSE:BA) was also dominating investor attention after the aircraft maker delivered better-than-expected quarterly revenue and detailed plans to ramp up production of its 737 jets.

Chipotle Mexican Grill (NYSE:CMG), meanwhile, jumped 14% to a record high as investors cheered the Mexican fast food chain's better-than-expected quarterly results that were bolstered by price hikes.

In financials, First Republic Bank (NYSE:FRC) remained the problem child, extending losses with a 20% decline after its disappointing quarterly results earlier this week. The battered regional bank has reportedly reached out to major Wall Street banks for another round of financial support following its $30 billion rescue deal earlier this year.

PacWest Bancorp (NASDAQ:PACW) shrugged off the doom in regional banks after announcing that the pace of deposit outflows seen in the first quarter had stabilized. The regional bank also reported first-quarter earnings that topped Wall Street estimates on Tuesday.

Energy fell nearly 1% as oil prices continued to slip as ongoing fears about a recession overshadowed data showing a much larger than expected drop in weekly U.S. crude inventories.

In deal news, Activision Blizzard (NASDAQ:ATVI) plunged nearly 12% as its $69B takeover by Microsoft was thrown into further doubt after a UK regulator blocked the deal amid antitrust concerns.