Shares of technology companies fell after mixed earnings.
Shares of Microsoft retreated after the software giant warned of slowing demand for some of its cloud-computing offerings such as Azure. Losses moderated as the session wore on, however. One strategist said such warnings were widely anticipated.
"The initial reaction to Microsoft's guidance, -- and they're certainly not the only ones giving some weak guidance, I think, is an overreaction," said Oliver Pursche, senior vice president at financial advisory Wealthspire. It was inevitable that the Federal Reserve's efforts to tame inflation would slow corporate growth, Mr. Pursche said.
"It's a fantasy to think you can bring inflation under control and slow the economy without it having an impact on corporate earnings. We went through a pretty sharp selloff in 2022 that priced in a lot of this earnings correction."
Shares of another cloud-computing provider, Amazon.com, initially fell before recovering losses late in the session.
Texas Instruments shares fell after the chip maker posted a drop in fourth-quarter sales.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-25-23 1735ET
