Big losses on Wall Street
Amazon triggers huge profit taking
US equity markets ended a weak week with significant losses. Disappointing economic data leads Amazon to a drop in prices. Apple and Intel also disappoint on Wall Street.
At the end of the month, US stock exchange participants took profits on a large scale. of the Dow Jones Index closed 2.8 percent down at 32,977 points on S & P-500 noticed 3.6 percent lighter. The one with a high technological content Nasdaq-Composite fell 4.2 percent. The Nasdaq experienced its strongest monthly setback since 2008. There were a total of 603 (Thursdays: 2,552) price winners and 2,716 (798) losers. 122 (115) securities closed unchanged.
If the quarterly report from the parent company of Facebook Meta had made investors optimistic, especially for the technology sector, the figures now show Amazon (-14 percent) that the trust may have been premature. The online mail order company ended the first quarter with a loss. The negative result reflects the general trend of the economy: drop in online purchases, high inflation and supply chain problems.
Not only a cause for joy also delivered Apple (-3.7 percent). Although the iPhone maker performed better than expected in its fiscal second quarter, it warns of a sharp decline in sales in the current quarter due to the lockdown in China. Intel (-6.9 per cent) exceeded its targets and market expectations in the first quarter, but “only” confirmed the prospects.
But there are also more confident companies this year. So he had Honeywell (+ 1.9%) raised its outlook when it presented better-than-expected figures. The two oil companies, on the other hand, did not meet expectations Chevron (-3.2 per cent) e Exxon Mobile (-2.2 percent).
Dollar rallying for the moment
Economic data offered little distraction from the fiscal season. Personal income and expenses for March were released, each of which increased more than expected. The increase in spending was somewhat more pronounced. High inflation is likely to have had an impact here. The labor cost index for the first quarter also grew slightly more than expected. The Chicago Area Purchasing Managers Index and the University of Michigan Second Reading Consumer Sentiment Index, both for April, came in below expectations.
There was a profit taking in the dollar. In recent days, the US currency had benefited from the upcoming interest rate hikes by the US central bank, but was also sought after as a safe haven in a context of political and economic uncertainty. After the dollar index rose to its highest level in nearly 20 years, it was ripe for consolidation, ING said. Currently there is Dollar index 0.4 percent later.
The bonds were sold following income and expense figures, which were reflected in rising yields. Traders pointed to the March rise in the PCE price index, the US Federal Reserve’s preferred price measure. Next week is likely to have an impact on the Fed’s interest rate decision. 10- and 30-year yields had their highest monthly gains in April since 2009.
Gold it rose slightly, which observers explained with fears of inflation and doubts about Europe’s energy supply. the oil prices tended to be inconsistent. Brent further benefited as Germany renounced its opposition to the Russian oil import ban. The WTI variety, on the other hand, gave way. Market participants have warned that ongoing blockages in China are likely to significantly reduce oil demand and thereby limit price increases.