(New York) The New York Stock Exchange opened lower on Thursday, continuing on the decline started the day before after the unexpected downgrading of the credit rating of the United States by the rating agency Fitch.
The Dow Jones index lost 0.19%, the tech-heavy NASDAQ fell 0.19% and the S
“After the strong market rally in the first seven months of 2023, investors didn’t need many excuses to take profits,” said Art Hogan of B. Riley Wealth Management about the downturn. clues.
After Fitch downgraded US debt to AA from AAA for the second time in history, the Dow Jones fell 0.98% to 35,282.52 points on Wednesday.
The NASDAQ index had slipped 2.17% to 13,973.45 points and the broader index S
Analysts noted, however, that this withdrawal reaction was much less severe than on August 8, 2011 when S
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On the bond market, since Tuesday, rates on long-term Treasury bills have begun to rise. By 10:00 a.m. EST, the yield on the 10-year note was stretching sharply to 4.18%, the highest since October 2022.
The White House and the US Treasury reacted strongly to Fitch’s decision, calling it “arbitrary” and “unwarranted”.
“The good news is that the debt ceiling has been raised for two years and inflation has slowed significantly,” said Art Hogan. The analyst also notes that “August and September are historically tough months for markets, especially when stocks are coming off a good run.”
Beyond debt, investors will be eyeing the aftermath of corporate earnings with two big announcements after the close: Apple (-0.29% at 10 a.m. EST) and Amazon (0.33 %). Shares of the two megacaps have jumped 50% since the start of the year.
Biotechs Amgen (-0.60%) and Gilead (-0.07%) are also expected.
Ahead of the opening, toymaker Hasbro announced a net loss of $235 million in the second quarter on sales down 10%.
However, the stock rose 4.70% as the group also revealed that it was selling its eOne branch, which produces cartoons for around $500 million, to Lionsgate studios.
“This divestiture allows us to focus on our expertise in toys and games,” said Chris Cocks, CEO of Hasbro.
Also announced before the market opened, Warner Bros Discovery’s second quarter results (-1.47%) disappointed with a larger than expected loss of $1.24 billion, although less severe than a year earlier. .
The number of subscribers to its Max streaming service also fell below analysts’ forecasts at 95.8 million instead of the expected 96.7 million.
Moderna Laboratories climbed 2.34% to $112.76 despite a loss and decline in revenue in the second quarter. But the company raised its outlook for full-year sales of its COVID-19 vaccine.
Southwest Airlines lost 1.90% after an unfavorable review from Jefferies.
The electronic payments company PayPal saw its share price drop by almost 11% despite results in line with forecasts clouded by a weaker operating margin.
Chipmaker Qualcomm plunged 10.05% to $116.22. Its quarterly profit came in above forecasts, but its revenue disappointed and the group reported weaker sales for phone-related chips.
