(CercleFinance.com) – The New York Stock Exchange is moving in dispersed order Thursday morning after Microsoft’s earnings warning, which encourages investors to be cautious.
At the end of the morning, the Dow Jones yielded nearly 0.5% to 32,663.2 points, while the Nasdaq Composite still managed to nibble 0.4% to 12,038.9 points.
Microsoft’s warning – due to unfavorable currency effects – is a blow to the optimism of market participants, who wonder if their earnings estimates have not become too optimistic given the current economic situation.
Microsoft thus fell by more than 2% after the announcement of its new forecasts for its fourth accounting quarter, which show an EPS target of between 2.24 and 2.32 dollars, against a target range of 2, 28-2.35 dollars previously.
Stakeholders also learned, an hour before the opening, that the American private sector had created fewer jobs than expected last month and that the country’s productivity had plunged by more than 7%.
These data seem to confirm the scenario of a slowdown in the world’s largest economy, which is fueling growing doubts about the Fed’s ability to raise rates sharply this year.
A table confirmed by the figures for industrial orders, which rose only 0.3% in April after a revised increase of 1.8% in March, where economists expected a rise of 0.7% .
On the bond market, the yield on ten-year Treasury bills eased towards 2.90%, which confirms the expectation of fewer rate hikes.
In the oil sector, prices are starting to fall again with a barrel of American light crude (WTI) which lost 0.3% to 114.8 dollars after OPEC formalized an upcoming increase in production.
On the stock side, Hewlett Packard Enterprise (HPE) fell by more than 7% after the downward revision of its annual forecasts, due to supply problems and the strengthening of the dollar.
Meta Platform, the parent company of Facebook, advances by 3% despite the announcement of the forthcoming departure of Sheryl Sandberg, its chief operating officer, after 14 years with the group.
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