Alphabet, Jobs Data Drag Wall Street   02/05 09:27

   A sharp drop for Google's parent company is dragging the U.S. stock market 
lower on Thursday, while prices for bitcoin, silver and gold weaken. 

   NEW YORK (AP) -- A sharp drop for Google's parent company is dragging the 
U.S. stock market lower on Thursday, while prices for bitcoin, silver and gold 
weaken. Yields are also sinking in the bond market following discouraging news 
on the U.S. job market.

   The S&P 500 fell 1.1% and is heading toward its sixth loss in the seven days 
since it set an all-time high. The Dow Jones Industrial Average was down 425 
points, or 0.9%, as of 10:10 a.m. Eastern time, and the Nasdaq composite was 
1.5% lower.

   Alphabet weighed on the market and sank 4.5%, even though the parent company 
of Google, YouTube and other businesses reported a stronger profit for the 
latest quarter than analysts expected. Investors focused instead on how much 
Alphabet is spending on artificial-intelligence technology and questioned 
whether it will all prove worth it.

   Alphabet said its spending on equipment and other investments could double 
this year to roughly $180 billion. That blew past analysts' expectations of 
less than $119 billion, according to FactSet.

   In the bond market, Treasury yields sank after a report said the number of 
U.S. workers applying for unemployment benefits jumped last week by more than 
economists expected. That could be a signal that the pace of layoffs is 
accelerating.

   Some economists suggested last week's rise could be statistical noise, and 
the total number remains relatively low compared with history. But a separate 
report said that layoffs announced by U.S.-based employers surged last month. 
The 108,435 was the highest number for a month since October, according to 
global outplacement and executive coaching firm Challenger, Gray & Christmas. 
For a January, it's the worst since 2009.

   A third report from the U.S. government said that employers were advertising 
fewer job openings in December than both the month before and year before.

   Weakness in the job market could push the Federal Reserve to cut interest 
rates to support the economy, even if it also risks worsening inflation. 
Treasury yields fell across the board in response.

   The yield on the 10-year Treasury sank to 4.23% from 4.29% late Wednesday.

   The moves were even sharper in commodities markets.

   Silver's price dropped 9.8% in its latest wild swing since its 
record-breaking momentum suddenly halted last week.

   Gold's price fell 1.5% to $4,874.20 per ounce. It's been careening back and 
forth since it roughly doubled in price over 12 months. It neared $5,600 last 
week and then fell below $4,500 on Monday.

   Both gold and silver had been screaming higher as investors piled into 
places they thought would be safer amid worries about political turmoil, a U.S. 
stock market that critics called expensive and huge debt loads for governments 
worldwide. But nothing can keep rising at such extreme rates forever, and 
critics had been calling for a pullback.

   Bitcoin, which is pitched as "digital gold," also sank. It dropped below 
$69,000, down from its record above $124,000 set in October.

   On Wall Street, Qualcomm fell 8.9% even though the chip company topped 
analysts' expectations for profit and revenue in the latest quarter. Its 
forecast for profit in the current quarter fell short of analysts' expectations 
as an industrywide shortage of memory pushes some handset makers to cut back on 
orders.

   Outside of tech, Estee Lauder also topped Wall Street targets. It raised its 
financial forecasts for the full fiscal year, but it also said it expects 
tariff-related headwinds to wipe out about $100 million worth of profits. The 
New York cosmetic company's shares sank 19.9%.

   On the winning side of Wall Street were some companies that stand to benefit 
from big spending by Alphabet and other companies continuing the AI frenzy. 
Chip company Broadcom rose 2.2% and was the strongest force limiting the S&P 
500's losses.

   McKesson jumped 16.3% for the biggest gain in the S&P 500 after reporting 
stronger profit and revenue for the latest quarter than analysts expected. The 
health care company also raised its forecasted range for profit this fiscal 
year.

   In stock markets abroad, indexes fell across much of Europe and Asia.

   London's FTSE 100 fell 0.5% after the Bank of England held interest rates 
there steady. France's CAC 40 fell 0.5%, and Germany's DAX lost 0.7% after the 
European Central Bank likewise stood pat on interest rates.

   South Korea's Kospi tumbled 3.9% for one of the world's biggest moves and 
dropped from its all-time high. Samsung Electronics dropped 6%, just two days 
after it had surged 11.4%.