Stock market: Wall Street ends sharply lower, weighed down by business forecasts

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MARKET OVERVIEW. The New York Stock Exchange tumbled on Tuesday, investors were worried by cautious forecasts from American companies, which confirmed the theory of an imminent slowdown.

The Toronto Stock Exchange’s flagship index plunged more than 300 points on Tuesday as a sharp decline in the tech sector pushed it to its lowest level in three months amid concerns about a slowdown in global economic growth.

Consult market news (again).

Stock market indices at close of trading

In Toronto, the S&P/TSX fell 321.08 points (-1.53%) to 20,690.81 points.

In New York, the S&P500 fell 120.92 points (-2.81%) to 4,175.20 points.

that Nasdaq fell 514.11 points (-3.95%) to 12,490.74 points.

that DOW fell 809.28 points (-2.38%) to 33,240.18 points.

that loons lost $0.0053 (-0.6740%) to $0.7801.

that oil closed at $3.75 (+3.81%) at $102.29.

gold Returned $8.70 (+0.46%) to $1,904.70.

that Bitcoin ended down $2,147.50 (-5.34%) at $38,045.05.

the context

“There was some caution about Alphabet and Microsoft’s results today,” commented Angelo Kourkafas, analyst at Edward Jones, “but it’s still a bit surprising because there wasn’t a really identified catalyst. »

Letters (GOOG) (-3.04%) and Microsoft (MSFT) (-3.74%) also dragged the Nasdaq down Meta (FB) (Facebook, -3.23%), who will present their results on Wednesday, and Apple (AAPL) (-3.73%) and Amazon (AMZN) (-4.58%), expected Thursday.

Together, these five companies weigh 21% of the S&P 500.

“In the past, we’ve seen tech stocks falter when bond yields rose,” recalls Angelo Kourkafas. “But today interest rates are falling on growth concerns. »

The US 10-year Treasury yield fell to 2.72%, the lowest in almost two weeks.

After the trade, Alphabet reported revenue and net income below analysts’ forecasts.

In after-hours electronic trading, the stock lost nearly 5%.

“There is clearly a concern that even companies that are performing better than expected tend to lower their forecasts,” said Tom Cahill of Ventura Wealth Management.

So if the conglomerate GE (GE) (-10.34% to $80.59), which is set to be split into three separate entities, performed better than analysts expected for revenue and net income, saying it fell short of the range of previously announced targets .

As for the airline Jet Blue (JBL) (-11.41% to $11.57), the company will reduce the volume of its flights by 10% this summer to improve the reliability of its schedules, but also to reflect the rise in kerosene prices and its margins to obtain.

Investors were watching China closely, where Beijing’s containment scenario is becoming clearer, while authorities on Tuesday reported 17,000 new cases of coronavirus in Shanghai over the past 24 hours.

“The concern is that if China continues to restrict, there could be further disruptions to the supply chain,” Tom Cahill said, adding to the slowdown in Chinese demand.

“It could weigh on company results in the second quarter and beyond,” as companies are currently releasing their first-quarter results.

Listed the day after the announcement of an agreement to acquire Twitter (TWTR) Elon Musk’s blue bird stock frankly moved (-3.91% to $49.68) away from the proposed takeover price, or $54.20 per share.

If the operation is successful, Twitter will be delisted less than ten years after its IPO.

In free fall on Monday (-12.90%), DWAC (DWAC)the listed vehicle believed to house Donald Trump’s media outlet rallied (+14.25% to $40.80) on Tuesday.

The former president announced he would not return to the Musk version of Twitter even if offered the opportunity.

Tesla (TSLA) (-12.18% to $US876.42) is seeing the lockdown in China getting worse, but also the involvement of its boss in the Twitter file. Since the beginning of the saga, the automaker’s title has lost more than 20%.

Courier and delivery service UPS (UPS) declined (-3.47% to $183.05), although results beat expectations. The group also confirmed its targets and doubled the amount of its share buyback program.

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