Equities New York Outlook: Significant losses

NEW YORK (dpa-AFX) – The ups and downs of the past few days on the US stock exchanges (ETR:) will probably continue. After the recent recovery, there is a risk of significant losses on Wednesday – the outlook from the software giant Microsoft (NASDAQ:) was responsible for a bad mood: a good half hour before the start of trading, the broker IG rated the Industrial 0.8 percent weaker at 33,448 points. The estimate of 11,651 points for the even includes a minus of 1.7 percent. The focus remains on the reporting season with a further surge in company figures.

Microsoft and Texas Instruments (NASDAQ:) had already given an account of business development in the past quarter on Tuesday after the stock market closed. Microsoft reported its weakest revenue growth in more than six years and a sharp drop in profits in the face of inflation and recession concerns, but overall this was in line with expectations. However, the outlook for the current quarter was disappointing, especially the announced slowdown in growth in the recently strong cloud division Azure. Even before the start of trading, the shares lost more than three percent.

The titles of Texas Instruments, meanwhile, only fell by 0.8 percent and thus held up better than the weakly expected Nasdaq 100. The chip manufacturer had to cope with a drop in sales and earnings due to reduced demand. The company also expects this development to continue in the current quarter.

The shareholders of Boeing (NYSE:) had to digest a pre-market price decline of more than two percent. Expensive problems with several types of aircraft broke the aviation and defense group in 2022 for the fourth consecutive year of losses, which this time were even higher than in the previous year. At the pharmaceutical company Abbott Laboratories (NYSE:) was down just 0.9 percent according to the figures.

In contrast, the telecom group AT&T (NYSE:) was convincing with the increase in sales and adjusted operating profit forecast for 2023 – the shares rose by 2.4 percent. The fact that adjusted earnings per share (EPS) are likely to fall due to high pension costs and higher interest rates did not bother investors, nor did the disappointing forecast for free cash flow, the billions in losses and the stagnation in sales last year.

Only after the closing bell on Wall Street did Tesla (NASDAQ:) and IBM (NYSE:) announced its earnings results. The recently recovered papers of the electric car manufacturer could develop rather weakly until then, as the pre-market price minus of around two percent shows. A media report, according to which Tesla’s driver assistance system has fallen significantly behind in a ranking by the consumer organization Consumer Reports, could have a somewhat negative effect. The IBM titles meanwhile held up comparatively well with minus 0.4 percent.