Wall Street set to take a breather; on track for weekly gains By Reuters

© Reuters. FILE PHOTO: A street sign, Wall Street, is seen outside New York Stock Exchange (NYSE) in New York City, New York

By Shivani Kumaresan

(Reuters) – Wall Street’s three main indexes were set to fall at the open on Friday as investors hit pause after a barrage of strong earnings and upbeat economic data through the week drove the benchmark to record level.

A rally in shares of big technology companies following their impressive results has put all three major indexes on track for weekly gains, while setting up the for a sixth straight month of increase.

The S&P 500 and are also on course for their third straight monthly gains.

“A lot of the earnings is already in, and so the market has entered a fatigue environment and investors are now going to assess the economic picture,” said Peter Cardillo, chief market economist at Spartan Capital in New York. Inc (NASDAQ:) rose 1.8% in premarket trading after posting record profits and signaling that consumers would keep spending in a growing U.S. economy and converts to online shopping are not likely to leave.

Twitter Inc (NYSE:) plunged 12.6% as it offered tepid revenue forecast for the second quarter, saying user growth could slow as the boost seen during the coronavirus pandemic fizzles.

Other high-flying stocks, including Facebook Inc (NASDAQ:), Alphabet (NASDAQ:) Inc, Apple Inc (NASDAQ:) and Netflix Inc (NASDAQ:), fell between 1.0% and 1.8%.

Strong economic growth in the first quarter, along with the Federal Reserve’s stance of keeping monetary policy loose for the foreseeable future, has pushed global stocks near record highs.

Data on Friday showed U.S. consumer spending rebounded in March amid a surge in income as households received additional COVID-19 pandemic relief money from the government.

At 8:36 a.m. ET, were down 166 points, or 0.49%, were down 26 points, or 0.62%, and were down 115.75 points, or 0.83%.

Chevron Corp (NYSE:) shed 2.4% after its first-quarter profit fell 29%, hit by weaker refining margins and production losses.

Gilead Sciences Inc (NASDAQ:) fell 2.8% after its first-quarter revenue fell short of Wall Street estimates as the coronavirus pandemic hurt sales of its flagship HIV and hepatitis C drugs.

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