Wall Street closed in the red: Dow Jones -1.2%, S&P500 -1.4%, Nasdaq -2.3%. Index data in particular is causing alarm Production of ISM, which stood at 46.8 points in July, down from June’s reading of 48.5 and below consensus at 48.8 points. Fear immediately arose in the markets that the Federal Reserve was wrong not to cut rates yesterday, as the US risks slipping into recession.
5:45 p.m. US stock markets moved into negative territory in the wake of macro data. Which indicates an economic slowdown
US stock markets continue the session in the red in the wake of some negative macroeconomic data. At 5.45pm the Dow lost 1.3%, the S&P 1.1% and the Nasdaq 1.6%. What worries markets are claims for unemployment benefits, which rose to 249,000 last week, beating forecasts of 235,000, in addition to the ISM manufacturing index, which stood at 46.8 points. in July, lower compared to June’s figure of 48.5 and below consensus at 48.8 points. Taken together, the data bolster concerns about a general slowdown in the country’s economic activity.
The yield on the 10-year Treasury bond, however, fell below 4% for the first time since February 2024, following yesterday’s Fed meeting.
3:30 p.m. US stock markets open positively driven by interest rate expectations. Five stocks to track
Wall Street opened the first session of August with a rise, after a rally on July 31st. At 3.30pm the Dow Jones was up 0.3%, the S&P 0.7%, and the Nasdaq, which reached +3.2% in the last session, gained 0.9%.
The market welcomed Federal Reserve Chairman Jerome Powell’s comments on a likely rate cut in September, provided inflation data continues to be encouraging. Members of the Federal Reserve are paying attention to recent increases in unemployment and potential weakness in the labor market. The unemployment rate, expected tomorrow, stood at 4.1% in June, and the value is expected to remain constant in July.
Treasury yields fell after the Fed meeting on the evening of July 31. The cost of ten-year government bonds fell to 4%. Oil prices continue to rise: both Brent even the what they earn 0.6%. The change euro-dollar it was down 0.3% at 1.079.
1. The meta is rising thanks to ads and AI
At 3:30pm Meta stock jumped 9%, driven by a quarterly report that beat expectations and by market enthusiasm for future prospects in artificial intelligence. The Colossus of Social media achieved revenue growth of 22% to $39.07 billion in the three months ended June, improving from the $32 billion reported in 2023, marking the fourth consecutive quarter of growth above 20%. A performance that also positively surprised analysts, who expected the turnover to be 38.81 billion. L’net income stood at $13.47 billion, or $5.16 per share, a 73% jump from the $7.79 billion reported a year ago. there advertising Confirms itself as the main business and main source of income for the company. Revenue from ad collections rose 22% to $38.33 billion, beating the $37.55 billion consensus.
To give strength to the growth of the business, which in recent years has been tested by the updates of Apple which has strengthened privacy protections, as well as artificial intelligence. “AI is improving recommendations and helping people find better content, as well as making advertising experiences more effective,” said CEO Mark Zuckerberg.
2. Moderna is struggling in Europe
Actions Modern they leave 19.6% on the ground at 3.30pm, after the group cut its guidance for the whole of 2024, following a slowdown in sales, particularly in Europe. The Massachusetts biotechnology company was formed in the second quarter sales for 241 million, down from the 344 million reported in 2023. The decrease was attributed to a decrease in sales of Covid-19 vaccines (-37% year-on-year). In particular, the vaccine Spikevax recorded sales of 184 million in the quarter, of which 162 million in the US and only 22 million in international markets. The pharmaceutical company then recorded a net loss of 1.3 billion. Moderna now expects sales revenue of between $3 billion and $3.5 billion, down from its previous estimate of $4 billion. All due to low sales volumes in Europe, the potential deferral of a portion of international revenues to 2025 and an increasingly competitive respiratory vaccine environment in the United States.
3. The price of oil fuels the accounts of ConocoPhillips
The title of ConocoPhillips up 0.1% at 3.30pm. The oil company reported adjusted earnings of $1.98 per share in the second quarter, up from the $1.84 reported in 2023 and slightly higher than the $1.95 analysts expected. Revenue came in at $14.14 billion, missing the consensus estimate of $14.73, but still an improvement from last year’s $12.88 billion. The company benefited from increased production and oil prices.
4. Spirit Airlines was grounded after the quarterly
At 3:30 pm the sharing of Spirit Airlines lost 2.4% after the airline revised its revenue estimates down to $1.28 billion from the $1.29 billion Wall Street expected for the second quarter as overcapacity and intense competition on its routes hampered pricing power. The company expects the third quarter sales total between $1.16 billion and $1.18 billion, compared to analysts’ average estimate of $1.33 billion.
Spirit also expects a 7.2 million impact onoperating income of the third quarter, due to operational disruptions caused by the CrowdStrike IT outage, which forced the carrier to cancel 470 flights.
5. Arm’s guidance disappointed Wall Street
At 3:30pm the title of Arm Holdings gives 9%. Although the British chip designer beat expectations in the first quarter of fiscal 2025, the guidance did not convince the market. The semiconductor company closed the quarter with revenues of $939 million, up 39% from a year ago and well above the $902.7 million analysts expected. Net income also grew, reaching 223 million, or 21 cents per share, from 105 million in 2023.
What didn’t cheer analysts was the guidance for the fiscal year. In fact, Arm confirmed its full-year forecasts, estimating an adjusted EPS (earnings per share) between 1.45 and 1.65 dollars per share with a turnover of between 3.8 and 4.1 billion. However, the market consensus is 1.58 dollars for EPS and 4.02 billion for turnover.
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