Worry about tech balance sheets
Wall Street is rushing into the red
4/26/2022 10:54 p.m
Because several tech giants only publish their figures after the market close, investors on Wall Street play it safe. The fact that Russia is turning off the gas tap for Poland and Bulgaria also means there is a clear minus in the evening.
The US stock exchanges suffered massive losses in the evening. Of the Dow JonesIndex closed 2.4 percent lower at 33,240 points S&P 500 traded 2.8 percent lower. The tech-heavy one Nasdaq Composite dropped 4.0 percent. There were a total of 585 (Monday: 1600) price winners and 2751 (1739) losers. 105 (109) titles closed unchanged.
During the course of the trading day, the news that Russia would stop gas supplies to Poland and Bulgaria was a shock. In addition, high inflation and the upcoming interest rate hikes by the US Federal Reserve continued to weigh on the mood. Concerns about the economy as a result of the strict lockdowns in China and the war in Ukraine also motivated investors to sell.
To do this, investors had to deal with a wealth of quarterly reports from important companies. While the reporting season has been good so far, there are concerns that inflation and supply chain issues will hurt corporate earnings. Therefore, the prospects should be examined closely. On the economic side, orders for durable goods rose by 0.8 percent in March, exactly in line with the consensus estimate of economists. The April consumer confidence index was marginally weaker than expected.
Quarterly reports are not convincing in all respects
has business numbers pepsico presented and the growth forecast for this year increased. The stock fell 0.3 percent. At least confirmed the outlook UPS (-3.6 percent). The logistics company also wants to double the volume of its share buybacks. However, he implemented fewer packages in the first quarter.
General Electric (-10.3 percent) performed better than expected in the first quarter, but now sees earnings and cash flow for the fiscal year at the lower end of the ranges announced at the beginning of the year due to high inflation and other factors. 3M (-3.0 percent) also beat expectations in the first quarter, but lowered its full-year guidance for unadjusted earnings per share.
Raytheon were 0.4 percent lighter after the company published figures with ups and downs and stockholders prepared for a decline in sales. After the closing bell, the technology heavyweights follow Microsoft, Texas Instruments and the Google parent alphabetto name just a few.
Bonds and dollars still in demand
In the current mixed situation with its numerous imponderables, investors sought their salvation in “safe havens”. On the bond market, this again led to sharply falling yields. The 10-year yield fell 7.5 basis points to 2.75 percent. Of the dollar extended its previous day’s gains. The pending rate hikes by the US Federal Reserve and the dollar’s reputation as a safe haven currency in times of crisis continued to provide support. The dollar index was up 0.6 percent.
the oil prices gained ground after the recent setback and gained over 3 percent. This was supported by the fact that the Chinese central bank is taking steps to help the economy and a complete lockdown in Beijing was avoided. Of the gold price gained slightly. Participants saw this as a countermovement after the heavy losses of the previous day.