Market Close: Stocks Lower, Amazon Results Disappoint, Google “Cannibalizes” Itself • 10/29/26

0:00CNBC Business News Update Market Close. I'm Jessica Ettinger. Wall Street opens Friday morning after a losing Thursday for the major averages. A disastrous drop for Google parent Alphabet shares following quarterly results as well as disappointing numbers on Thursday after the closing bell from Amazon, Intel and Starbucks. Let's look at the major averages. The Dow was down 132 points. Google parent alphabet shares led the Dow lower. They were down 12.5 % on Thursday. The S &P 500 index down 23. The Nasdaq fell 365 points. That was 1.3%. Major averages are all still in the green for the week. Amazon shares tanking 9 % on first reaction after the closing bell Thursday on its quarter.

0:53Following Google down, here's CNBC's Mike Santoli. I have to say this quarter with these big names, a stock that's been down into the number has not meant the lower bar. It's actually meant the market getting anxious and sniffing something out because obviously Google have been an underperformer going into its report as well. Amazon missed estimates on both earnings and revenue. It's holding its CapEx spending steady, not dropping it, fueling AI jitters that the money's flowing out and may never come back in returns. Full detailed coverage at CNBC TV, CNBC.com and the CNBC app on your phone. Google and YouTube parent Alphabet shares tanked on Thursday, wiping out a stunning$500 billion of market cap after disappointing quarterly results.

1:37And a focus on its own AI cutting into its own search business. Here's CNBC's Brian Sullivan with Wells Fargo's Ken Gorelsky. I actually think this is self-inflicted. this is a move to AI search. Are you talking about how Google now has the AI results at the top? You get sort of the Google summary at the top, and I've got to imagine there's a huge number of people for them. That's enough. That's right. That's right. You search your term, and it now comes up with AI overviews. Many users don't feel the need to click. For the company that's bidding on keywords, they're going to say, I'm going to bid less money.

2:12Why would I bid more money when a lot of my links aren't being clicked on because nobody's clicking through because they're getting all the information they need from some sort of web scraped AI result at the top. Here's a take on the AI trade from Newbergers. Steven Eisman with CNBC's Becky Quick. You've said you think the entire market is dependent on the AI trade. Why are you not willing to take that next step to say the market's going to come down substantially? It's a good question. I think it's a scary bet to make because so much of the market is on the other side. and it's still reading tea leaves.

2:50I think we're getting closer. I think the numbers from Google scared people. It's all pointing in that direction. I'm just not quite sure when the tipping point is. Intel reporting quarterly results that disappointed after the closing bell Thursday. Its shares plunged 20 % in after-hours trading. Starbucks reported mixed quarterly results after the closing bell on Thursday. It missed expectations for revenue, but did better than expected on earnings. The company is working on a turnaround. Potley Market reported an international outage on Thursday and halted trading. Caterpillar shares tanked almost 10 % on Thursday on its results and AI worries.

3:32On Friday's watch list, more earnings from some of the oil giants Chevron and ExxonMobil. The world's priciest yachts get shown off at the Fort Lauderdale International Boat Show. Jessica Edinger, CNBC.