2023-04-20 21:05:16
The Dow Jones dropped 0.33%, the Nasdaq fell 0.80% and the broader S&P 500 index dropped 0.60%.
The New York Stock Exchange ended lower on Thursday, weighed down by some disappointments in the wave of corporate results, in particular Tesla, but limited its losses in a still wait-and-see climate.
The Dow Jones lost 0.33%, the Nasdaq returned 0.80% and the broader S&P 500 declined 0.60%.
“A few big names weighed on the S&P, the biggest being Tesla, which dragged down the entire consumer discretionary sector with it,” said Art Hogan of B. Riley Wealth Management.
“This is the first time since the start of the earnings season that the market has started to move,” noted the analyst, the first three sessions of the week having resulted in minor variations.
The company led by Elon Musk was punished (-9.75%) for having reported, Wednesday following the stock market, a sharp erosion of its margins due to its policy of cut prices to compensate for the rise of competition and reduced consumer appetite.
“Tesla remains attractive, but the market will not fully recover the group’s valuation until margins recover,” said Sophie Lund-Yates of Hargreaves Lansdown in a note.
With Tesla, all the manufacturers of electric vehicles caught cold on Thursday, from Lucid (-7.22%) to Rivian (-3.67%), via the Chinese NIO (-5.80%). Even the historical players in the automobile industry, which also invest massively in electric vehicles, have suffered, whether GM (-3.01%) or Ford (-2.86%).
In their extension, the tourism sector suffered, like the booking platform Expedia (-1.37%) or the cruise operator Norwegian Cruise Line (-4.10%).
In addition to Tesla, investors also punished the telephone operator AT&T (-10.41%), which missed the revenue target set by analysts due in particular to the deceleration of its business activity.
Even if they no longer worry regarding their future, as was once the case during the banking crisis, the regional banks have paid results that reflect a contraction in their deposits and their margins.
Salt Lake City-headquartered Zions was particularly targeted and fell 4.89% following lowering its full-year forecast.
The gloom also came from the day’s macroeconomic indicators, all of which were worse than expected.
New weekly jobless claims rose more than expected, manufacturing activity in the Philadelphia area fell to the lowest since May 2020, and existing home sales contracted.
These figures favored an easing of bond yields, which reflects expectations of a deterioration in the economy. The yield on 10-year US government bonds fell to 3.52%, once morest 3.59% the day before closing.
This decline in bond yields has limited that of Wall Street, as well as some good surprises on the corporate side.
The computer group IBM thus floated (+0.03%) following reporting an improvement in its margins, in particular thanks to savings measures.
In addition, the New York market welcomed the results of construction giant DR Horton (+5.64%), the largest real estate construction group in the United States, which delivered forecasts higher than those of Wall Street for the whole year, counting on the lack of supply to support the market.
Wall Street remains in a waiting position, its eyes already fixed on the technological giants, whose results are expected from next week.
For Art Hogan, “we will have to go through these publications” to form a general opinion on the results season.
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