(New York) The New York Stock Exchange opened lower on Tuesday, as the momentum of the technology sector which had carried the indices the day before faded.
The Dow Jones index lost 0.77%, the technology-dominated NASDAQ lost 0.83% and the S
This decline comes after a very positive session for the indices, with the NASDAQ climbing 2.20% to 14,843.77 points on Monday. The Dow Jones index had advanced 0.58% to 37,683.01 points and the broader S index
Several warnings of revenue declines from technology groups have dampened investor sentiment, said Patrick O’Hare of Briefing.com.
“A warning on Microchip Technology’s fourth quarter revenue linked to a weakening economic environment and the fact that Samsung Electronics indicates that its operating profit will be down 35% year-over-year in the fourth quarter” is likely to spark “sales in the semiconductor sector,” the analyst explained.
Microchip Technology lost 0.77%. Even Nvidia, the designer of powerful microprocessors for artificial intelligence, lost 0.80% after jumping 6.43% at the close the day before.
Among the other “Magnificent Seven” in technology, Apple lost 1.42%, Tesla -2.02%, Microsoft -0.80%.
Streaming leader Netflix fell 2.06% after a poor analyst rating.
The manufacturer of routers and network equipment, Juniper Network soared by almost 22% while Hewlett Packard Enterprise (HPE) was preparing its acquisition for some $13 billion, according to the Wall Street Journal.
Aircraft manufacturer Boeing continued to suffer the repercussions of the latest setbacks for its Boeing 737 MAX 9.
The stock was down 1.93% after crashing more than 8% on Monday.
Following the mid-flight separation of an aircraft door on an Alaska Airlines aircraft on Friday, dozens of Boeing 737 MAX aircraft were grounded for inspection.
In addition, initial inspections of other companies operating these jets revealed loose components on United Airlines aircraft. United were up 0.75%.
United, which operates the world’s largest fleet of 737 MAX 9s with 79 aircraft, discovered “bolts that needed to be tightened” during checks on the condemned doors of its 737 MAX 9s, the same as the one torn off on Friday.
On the macroeconomic front, the Commerce Department announced a reduction in the trade deficit in November, a sign of a slight slowdown in the US economy.
The U.S. goods and services deficit with the rest of the world reached $63.2 billion, down 2 percent from the previous month.
Over one year, the American trade deficit is still declining significantly, by 18.4%, mainly due to an increase in exports and a drop in imports.
But the most important indicator of the week will be inflation with the CPI price index for December being released on Thursday. It is expected to show a monthly rise of 0.3%, according to analysts.
On the bond market, ten-year rates fell slightly to 4.00% compared to 4.03% the day before.
