Tuesday, February 27

Wall Street opens with a mixed tone: Amazon pulls the S&P500 hard

Wall Street opens this Friday with a mixed tone as investors digest the quarterly reports of companies published in recent sessions and after the NASDAQ recorded its worst session in more than a year yesterday.

Specifically, this Friday the DOW JONES fell 0.30% to 35,006.43 points. Meanwhile, the S&P 500 rose 0.10% to 4,485.50 and the NASDAQ advanced 0.48% to 13,945.07 points.

The biggest drops in the Dow Jones are for Merck (-3.66%), Unitedhealth Gro (-1.37%) and Visa (-1.03%).

In the S&P500 the biggest increases are for Amazon (10.11%), Nortonlifelock (3.90%) and Occidental Petroleum Corp. (3.78%). The biggest decreases were carried out by Clorox Co. (-11.38%) and Ford Motor (-10.96%).

In the technology section, in the Nasdaq Composite the values ‚Äč‚Äčthat rise the most are ALJ Regional Holdings Inc. (18,03%), E-Home Household Service Holdings Ltd. (17.55) and Taysha Gene Therapies Inc. (11.57). On the opposite side, falls of 52.44% for Triterras Inc. and 21.25% for Vanda Pharmaceuticals Inc.

The e-commerce giant Amazon obtained a net profit of 33,364 million dollars (29,392 million euros) in 2021, which represents an increase of 56.4% compared to the profits recorded a year earlier, as reported by the multinational, which will raise the price of its Prime service in the United States for the first time since 2018.

Some movements that come a day after the fall of technology companies caused by the disappointing earnings report of the parent company of Facebook, Meta. The company’s weak results sent mega-cap shares lower on Thursday and weighed on equity markets. Its titles fall 2.84% at the opening.

The indices try to overcome the fall caused by Facebook…

Following the quarterly results of Facebook, “everyone gave up and sold the whole sector. That was clearly the wrong reading,” Lightshed Partners’ Rich Greenfield said on CNBC’s “Closing Bell” show Thursday. “What’s going to be really interesting is how investors start to look at these companies more individually versus the whole sector”.

On Thursday, the NASDAQ 100 fell 3.7% for its worst daily performance since September 2020. The S&P 500 had its worst day in nearly a year, slipping 2.4%. The Dow Jones industrial average fell 518.17 points.

“The sharp drop in FB’s market capitalization and the accompanying drag on the S&P500 Index is a stark reminder of the high concentration of mega-cap tech stocks in the S&P 500 – and the vulnerabilities that such concentration brings,” said Chris Hussey. from Goldman Sachs in a note on Thursday. In fact, To put into perspective the collapse that Meta’s shares had yesterday, to point out that the company lost 230,000 million dollars of capitalization during the session. In this sense, it should be noted that there are only 30 companies in the S&P 500 that capitalize more than that amount.

On the other hand, Ford Motor has missed estimates by a wide margin, posting a profit of 26 cents per share, well below the consensus of 45 cents. Stocks fell more than 10% this Friday in the early stages of the Wall Street session.

Pinterest beat Wall Street forecasts by 4 cents with an adjusted quarterly profit of 49 cents per share. It also reported better-than-expected earnings. The social site also wrapped up its first profitable year amid strengthening ad revenue.

News Corp it beat estimates for top and bottom revenue in its latest quarter, and the media company benefited from growth in digital real estate services, book publishing and its Dow Jones division.

Skechers came in 10 cents above analyst forecasts with an adjusted quarterly profit of 43 cents per share, and the shoe retailer also posted better-than-expected revenue as it successfully bet on demand for casual and comfortable footwear.

…and with oil pointing to $100

All in a session in which the market’s attention was on the non-farm payroll report for January, which was expected to show an increase of 150,000, according to an estimate by Dow Jones. Even many analysts believed that the data would be negative. Contrary to what the market expected, the employment data in the United States for the month of January came as a surprise. Last month, 467,000 non-farm payrolls were created.

The unemployment rate is practically the only negative note: it rises one tenth, to 4.0%. Also good news in private non-farm payrolls, with the creation of 444,000. The forecast was also for 150,000 new ones, much less than in December. The average income per hour, in year-on-year terms, rose 5.7% and the monthly figure was up 0.7%. In both cases, higher than expected.

Meanwhile, US oil futures have broken above $90 a barrel for the first time since 2014, raising concerns about inflation. At these hours, the barrel of Brent crude climbs 1.67%, to 92.63 dollars while the West Texas writes down 1.94% and is trading at 92.02 dollars per barrel.

La rUS 3 year accounting rises up to 11 basis points, to 1.53%

Gold falls 0.19% to $1,800.65 on a day in which Bitcoin rises more than 3% to $37,703.7.