(New York) The New York Stock Exchange moved in scattered order on Tuesday, but the previous day’s momentum carried by the tech megacaps continued, pending Wednesday the results of Nvidia, the darling of the sector, propelled by the ‘artificial intelligence.
The Dow Jones Index fell 0.10%, the tech-heavy NASDAQ gained 0.42% and the broader S Index
On Monday, while the Dow Jones index fell 0.11% to 34,463.69 points, the NASDAQ jumped 1.56% to 13,497.59 points and the S index
The technology sector had climbed 2.26% driven by Tesla (7.33%), but also by the shares of Amazon, Meta, Netflix, Alphabet and Apple all largely in the green.
Investors will keep their eyes on Nvidia, maker of highly sought-after graphics processors for the development of artificial intelligence, which will announce its quarterly accounts on Wednesday. On Monday, the fourth-largest market-cap stock soared more than 8%. Tuesday around 10 a.m. (Eastern time), he was catching his breath (-0.69%).
Bond yields remained firm after solidly hitting their highest since 2007. Ten-year yields thus stood at 4.35% and two-year yields now exceeded 5%.
On the indicator front, sales of existing homes, which represent the bulk of the real estate market in the United States in volume, fell again in July, more than expected by the markets.
They fell by 2.2% at an annualized rate. The median price of a home, on the other hand, remains on the rise (1.9% year-on-year) while the lack of inventory of houses for sale continues to put pressure on prices.
“Two factors are predominant for the volume of sales at present: the available inventory and the real estate rates”, recalled Lawrence Yun, the chief economist of the NAR, “unfortunately both are unfavorable to the buyers”.
The rise in bond yields was followed by a jump in the cost of mortgages, which rose last week to more than 7% for standard thirty-year loans.
Listed sports equipment chain Dick’s Sporting Goods slumped 24% after warning that profits would be weaker than expected for the full year, citing more skittish consumers as well as an abundance of flights.
“The slight decline in growth in the second quarter (1.8% like-for-like) is further evidence that consumer spending is under pressure,” commented analysts at GlobalData.
Another detail, the department store chain Macy’s also plunged more than 8%. The brand saw its profits decline and its quarterly sales melt by 8%, even if they exceeded analysts’ expectations. “The consumer is cutting back on discretionary spending which is clearly affecting Macy’s,” GlobalData noted, as these department stores primarily sell apparel, home furnishings, and beauty products.
Moderna (2.83%), Novavax (6.20%) and Biotech (3.05%), manufacturers of COVID-19 vaccines, were all wanted as hospitalizations rise again in the United States due to new virus variants.
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