(ABM FN-Dow Jones) The American stock markets ended sharply lower again on Thursday, with the Nasdaq falling even deeper into a correction. The tech index lost 1.8 percent to 12,595.61 points. The S&P 500 fell 1.2 percent to 4,137.23 points and the Dow Jones index lost 0.8 percent to 32,784.30 points.
On Wednesday, the Nasdaq closed almost 11 percent below its 2023 high of more than 14,358 points.
“The S&P 500 and Nasdaq have both exited key support levels as questions grow about relative valuations in big tech companies against the backdrop of a slowing global economy,” said market analyst Michael Hewson of CMC Markets.
Shares of tech giants such as Alphabet and Meta lost ground on Thursday, after presenting disappointing results in the previous days. Intel and Amazon are on the agenda after hours.
A positive growth figure from the United States also did not help sentiment on Thursday. The American economy grew by 4.9 percent in the third quarter, preliminary figures showed. In the second quarter, the US economy grew by less than half. Economists on average took into account a growth rate of 4.7 percent in advance.
“Most people think so [de groei] was driven by one-off factors, with personal consumption accounting for 4 percent of the economic expansion,” Hewson said.
According to ING, the headwinds for the US economy and households in particular are increasing and the growth rate will slow to 1.5 percent in the fourth quarter.
According to Goldman Sachs, Thursday’s US GDP figure will have little impact on the Federal Reserve’s upcoming policy meeting, with the central bank expected to leave its current policy unchanged.
The consumer price index PCE showed an increase of 2.9 percent in the third quarter, compared to 2.5 percent in the second quarter. Current PCE inflation data will be released on Friday.
On the macroeconomic front, it was also announced on Thursday that US unemployment benefit claims rose by 10,000 to 210,000 last week, while durable goods orders rose 4.7 percent in September, much better than expected.
The euro/dollar was trading at 1.0550 and the US ten-year yield at 4.85 percent. WTI oil became 2.6 percent cheaper on Thursday, costing just over $83 per barrel.
Company news
Meta lost almost four percent, despite quarterly figures that were better than analyst expectations. However, the company warned of weaker ad demand in the fourth quarter so far.
Mattel exceeded expectations in the third quarter. The toy manufacturer also raised its expectations for the year. Yet the share fell by almost eight percent on Thursday after a warning of slowing demand in the run-up to the holiday season.
Industry peer Hasbro also disappointed with a quarterly loss of $171 million, compared to a $129 million profit a year earlier. Consumers bought 18 percent less products. The share fell almost twelve percent.
IBM did slightly better than expected and according to the CEO, the effort to capitalize on the AI boom is starting to pay off. The share gained almost five percent.
Harley-Davidson saw motorcycle sales decline last quarter, but expectations for the year were maintained. The share lost more than six percent.
Comcast posted more profit and slightly more revenue in the third quarter. The share still lost more than eight percent.
Merck saw profits rise and therefore performed above market expectations. The share rose almost two percent.
Honeywell, known for electronic control systems, raised its profit forecast after improving sales in the third quarter. The stock still fell one percent.
Package delivery company UPS issued a warning after profit and turnover declined in the third quarter. The share lost six percent.
Ford fell one and a half percent after the United Auto Workers union announced that it had reached a provisional wage agreement.
Mastercard saw profits rise sharply in the third quarter on growing turnover. The share still lost more than five percent.
Bron: ABM Financial News
ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.
2023-10-26 20:12:47
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