The New York Stock Exchange opened lower on Tuesday, hampered by some disappointing company forecasts, and in a waiting position before publications from the tech giants.
Around 2:00 p.m. GMT, the Dow Jones fell 0.75%, the Nasdaq index, very influenced by technology stocks, yielded 2.19%, and the broader S&P 500 index, 1.15%. “It seems that the rebound will not have any continuation”, commented, in a note, Patrick O’Hare, of Briefing.com, in reference to the inflection of Monday, which had seen the indices rise at the end of session, after having reached, on the downside, technical thresholds.
Before the opening, Wall Street received a volley of new corporate publications. “We saw several big names, most of whom did better than expected, but others issued warnings,” observed Peter Cardillo of Spartan Capital.
The GE conglomerate (-9.16% to 81.65 dollars), on the way to splitting into three separate entities, did better than predicted by analysts, for turnover and net profit, but indicated s down the range of previously announced targets.
As for the airline JetBlue (-5.86% to 12.30 dollars), it will reduce the volume of its flights by 10% this summer to improve the reliability of its schedules but also to take into account the soaring prices of kerosene. and preserve its margins.
For its part, PepsiCo (+0.85% to 175.22 dollars) raised its sales forecast for the year but warned that the group could continue to be affected by the volatility of raw material prices or the disruptions in the supply chain.
A hesitant market
“The market will probably be hesitant” on Tuesday, “pending results from Google (Alphabet) and Microsoft,” according to Peter Cardillo. A few hours before communicating their quarterly figures, the two behemoths of the rating were hunkered down, Alphabet dropping 2.91% and Microsoft 1.60%.
For Patrick O’Hare, given the weight of these values, associated with Meta (ex-Facebook, -3.02%), which publishes on Wednesday, or Apple (-1.43%) and Amazon (-3.24% ), which will be Thursday’s turn, the whole market was in a waiting position on Tuesday.
After a first boost on Monday, rates eased a little more on Tuesday, the fear of an economic air pocket in the coming months outweighing inflation and the very voluntarist speech of the members of the Bank US central (Fed).
Investors still had their eyes on China, where the prospect of confinement in Beijing is becoming clearer hour by hour, while Shanghai, already confined, still recorded 17,000 new cases of coronavirus in 24 hours.
In less than three sessions, the yield on 2-year US government bonds fell 0.28 percentage points to 2.51% on Tuesday, an unusual move in this market. The 10-year yield was also down, at 2.74%, against 2.82% the day before.
On the side, the day after the announcement of an agreement on the takeover of Twitter by Elon Musk, the title of the blue bird moved away a little (-1.42% to 50.97 dollars) from the proposed acquisition price of $54.2 per share. If the operation is a success, Twitter will be delisted, less than ten years after its IPO.
In freefall on Monday (-12.90%), DWAC, the listed vehicle which is to accommodate Donald Trump’s company dedicated to the media, recovered on Tuesday (+3.86% to 37.09 dollars). The former president announced that he was not returning to the Elon Musk version of Twitter, even if the possibility was offered to him.
Tesla (-6.76% to 930.54 dollars) continued to struggle with the commitment of his boss in the Twitter file. Since the beginning of the saga, the title of the automaker has lost more than 17%.
The courier and delivery service UPS was down (-3.30% to 183.38 dollars), despite results above expectations. The group also confirmed its objectives and doubled the amount of its share buyback program.