Wall Street extends rout, CrowdStrike slumps on global tech outage
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Eli Lilly rises as weight-loss drug gets approval in China
Intuitive hits record high after quarterly results beat
SLB up after beating quarterly profit estimates
Insurer Travelers gains on higher Q2 profit
Indexes down: Dow 0.44%, S&P 500 0.05%, Nasdaq 0.10%
Updated at 9:48 a.m. ET/ 1348 GMT
By Lisa Pauline Mattackal and Ankika Biswas
July 19 (Reuters) -Wall Street's main indexes fell on Friday, deepening a sell-off driven by tech stocks and mixed earnings, while investors assessedthe impact of a global cyberoutage that knocked down CrowdStrike's shares to an over two-month low.
Cybersecurity firmCrowdStrike CRWD.O slumped 11.2%after an update to one of itsproducts appeared to trigger an outage that affected customers using Microsoft's MSFT.O Windows Operating System, disrupting businesses across sectors.
Major U.S. airlines ordered ground stops citing communication issues, with the Euronext exchange andLondon Stock Exchange Group's LSEG.L Workspace news and data platform also facing issues. LSEG latersaid its data and services were back online.
Microsoft slipped 0.7% to an over one-month low, on track for a four-day decline, driven by a rout in tech stocks.
"Any hint of bad news, because they (tech stocks) are so priced to perfection is going to hurt these stocks, both (CrowdStrike and Microsoft) are excellent companies and are worthwhile long-term holds," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.
The disruption comes after two grueling sessions for Wall Street, as investors assessed second-quarter earnings and a move away from megacaps that have primarily driven the equity rally in 2024.
Megacaps were largely mixed, with Nvidia NVDA.O and Amazon.com AMZN.O losing 1% and 0.5%, while Apple AAPL.O and Alphabet GOOGL.O gained 1% each.
Chip stocks also struggled for direction. U.S.-listed shares of Taiwan Semiconductor Manufacturing TSM.N were down nearly 1.5%, while Arm Holdings ARM.O jumped 3%.
Over the past two sessions, the Nasdaq has dropped 3.5% and the S&P 500 has fallen2.1%, keeping the indexes on track for weekly losses.
Signaling investor unease, the VIX .VIX - Wall Street's "fear gauge" - was trading at its highest since early May.
Investors will also await comments from Federal Reserve officials John Williams and Raphael Bostic for hints on the policy path later in the day.
Markets have priced in a 25-basis-point interest-rate cut by September and expect two cuts by year-end according to LSEG data.
At 9:48 a.m. ET, the Dow Jones Industrial Average .DJI was down 179.14 points, or 0.44%, at 40,485.88, the S&P 500 .SPX was down 2.69 points, or 0.05%, at 5,541.90, and the Nasdaq Composite .IXIC was down 18.08 points, or 0.10%, at 17,853.15.
Meanwhile, other cybersecurity shares rose, with Palo Alto Networks PANW.O rising 1.5% and SentinelOne S.N up 6.4%.
Eli Lilly LLY.N jumped 2.6% after China approved its weight-loss drug tirzepatide, whileIntuitive Surgical ISRG.O rose 8% aftera second-quarter results beat.
That helpedthe S&P 500 healthcare index .SPXHC lead sectoralgainers.
Netflix NFLX.O fell 1% in choppy trading after the streaming giant cautioned third-quarter subscriber additions would be lower than a year earlier.
0ilfield services provider SLB SLB.N rose 1.3% after strong second-quarter profits.
S&P 500 companies that have reported second-quarter earnings to date recorded an85% beat rate, with the growth rate standing at 11.1%.
Declining issues outnumbered advancers for a 1.40-to-1 ratio on the NYSE and for a 1.19-to-1 ratio on the Nasdaq.
The S&P index recorded 27 new 52-week highs and three new lows, while the Nasdaq recorded 16 new highs and 33 new lows.
Reporting by Lisa Mattackal and Ankika Biswas in Bengaluru; Editing by Pooja Desai and Devika Syamnath
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