[1/4]Traders are engaged in their activities at the New York Stock Exchange (NYSE) in New York City, United States, on October 26, 2023. Reuters/Brendan McDiarmid has obtained licensing rights
Thank you for reading this post, don't forget to subscribe!- Meta Platform Projected to Expend More Than Anticipated in 2024
- UPS Revises Downward its Complete-Year Revenue Outlook
- Mastercard Anticipates Lower Growth in Fourth-Quarter Net Revenue than Expected
- Indices Down: Dow -0.40%, S&P -0.75%, Nasdaq -1.30%
On October 26 (Reuters), the Wall Street main indexes experienced a decrease as megacap stocks continued to face pressure. Investors were assessing the ongoing quarterly earnings season along with a combination of data.
Despite beating expectations with its third-quarter results, Meta Platform (META.O) dropped by almost 4% due to higher-than-expected spending in 2024 announced by its parent company, Facebook. The company also warned that the ongoing conflict in the Middle East might negatively impact its sales.
Despite a decrease after the release of inflation and disposable income data, 10-year Treasury yields remained close to the 5% mark. Consequently, shares of Tesla (TSLA.O) and Microsoft (MSFT.O) declined by 1.7% and 3.1%, respectively.
Amazon.com (AMZN.O) experienced a 1.2% decrease before the closing bell, while Google-parent Alphabet (GOOGL.O) declined by 1.8%, after suffering a 9.5% decline on Wednesday.
Regarding data, the core personal consumption expenditures contracted by 2.4% in the third quarter, while weekly jobless claims climbed to 210,000, slightly higher than the anticipated 208,000.
Traders are speculating that although the U.S. economy grew at its fastest pace in nearly two years in the third quarter, the Federal Reserve will maintain its current policies throughout this year and start reducing interest rates in mid-2024.
Brent Schutte, the chief investment officer at Northwestern Mutual Wealth Management Co., stated: “The Federal Reserve will only withdraw liquidity from the economy once they witness the final impact on inflation.”
Investors’ attention on Friday will be focused on the personal consumption expenditure (PCE) price index for September, the Federal Reserve’s preferred inflation gauge.
On Thursday, United Parcel Service (UPS.N) experienced a 4.0% decrease after reducing its full-year revenue forecast. In addition, Comcast (CMCSA.O) faced a decrease after the media giant reported an unexpected loss of customers in its broadband business, causing its shares to decline by 6.4%.
Hasbro (HAS.O), the toy manufacturer known for its “Transformers” action figures, experienced a 10.4% decrease after revising downwards its annual revenue forecast. Furthermore, Mattel (MAT.O), the creator of Barbie dolls, warned of a slowdown in industry demand during the crucial holiday season, resulting in a 7.4% decrease of its shares.
Mastercard (MA.N) reported a 5.3% decrease after projecting diminished growth in net revenue for the fourth quarter, falling short of expectations.
According to a report, Western Digital (WDC.O) faced an 11.2% decrease after the U.S.-based company and Kioxia Holdings, from Japan, terminated discussions about establishing one of the world’s largest chipmakers.
As of 11:25 a.m. ET, the Dow Jones Industrial Average (.DJI) had dropped by 133.72 points, or by 0.40%, reaching 32,902.21. Similarly, the S&P 500 (.SPX) was down by 31.34 points, or by 0.75%, at 4,155.43, while the Nasdaq Composite (.IXIC) had a decrease of 166.85 points, or by 1.30%, reaching 12,654.37.
Among the S&P 500 sectors, the Communication Services (.SPLRCL) sector experienced the biggest decline, while the Real Estate (.SPLRCR) sector recorded the highest gains.
Meanwhile, Israel reported that its ground forces had launched a significant offensive in Gaza overnight, targeting Hamas positions. Prime Minister Benjamin Netanyahu stated that the preparation for a ground offensive affecting various parts of the Gaza Strip is still underway.
On the NYSE, advancing issues outnumbered decliners by a ratio of 1.44-to-1, while the same ratio on the Nasdaq was 1.20-to-1.
During this period, the S&P index did not record any new 52-week highs but recorded 30 new lows. On the other hand, the Nasdaq recorded 10 new highs and 287 new lows.
Reporting by Ankika Biswas and Shashwat Chauhan in Bengaluru; Editing by Maju Samuel and Shaunak Dasgupta
Our Standards: The Thomson Reuters Trust Principles.
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