Wall Street inaugurates a new week full of appointments and news from the corporate front in the name of caution. The Dow Jones loses up to -250 points, and then cuts losses and travels around 35,111 points, down about 180 points. The S&P 500 fell 0.26% to 4,459, while the Nasdaq fell 0.10% to 14,881 points.
The earnings season for Corporate America kicked off last week and saw banks look special: JP Morgan, Morgan Stanley, Goldman Sachs, Citi and Wells Fargo all reported closing Q3 2021 on better-than-expected balance sheets. .
The US stock market reacted positively, with the Dow Jones and the S&P 500 which, with weekly gains of + 1.58% and + 1.82% respectively, closed the best weeks since June and July respectively. With a weekly rise of 2.18%, the Nasdaq Composite ended the best week since the end of August.
So far, 41 member companies of the S&P 500 have reported their financial results: of these, 80% have beaten the EPS estimates, according to data collected by FactSet.
Also according to FactSet, considering the companies that have already released the quarterly earnings and the estimates on earnings per share of those that have not yet done so, the growth in earnings for the third quarter of the year will be + 30%, the third growth, on a quarterly basis, highest since 2010 for companies listed on the benchmark list.
In the week that has just begun, Netflix, Johnson & Johnson, United Airlines and Procter & Gamble tomorrow, while in the rest of the week it will be up to Tesla, Verizon and IBM.
Today, the indices are falling, even in the face of 10-year Treasury rates returning above 1.6%. 30-year Treasury rates are barely moved at 2.058%. Yields also rose last Friday, following the release of US retail sales, which rose 0.7% in September, compared to the -0.2% decline expected by analysts.
Among the stocks protagonists of the session, Zillow in sharp decline on Wall Street, lost more than 9% after a Bloomberg article, according to which the company active in the real estate market has temporarily paused the acquisition of new homes. The group has decided to work instead to dispose of the real estate it has already taken over.
Tesla stock up about 2%, increasingly in the spotlight due to the gains reported in the last period: the prices of the electric car giant founded by Elon Musk have been growing for eight consecutive weeks, confirming the strongest bullish phase since period before the Covid-19 pandemic and rallied by as much as 50% from the minimum tested on March 8, at $ 563.
The comeback makes Tesla the sixth largest listed company on Wall Street, well ahead of Berkshire Hathaway.
Disney stock under pressure, it drops almost 3%. The judgment of Kannan Venkateshwr, an analyst at Barclays, weighs, who has revised down the rating on the stock, from “overweight” to “equal weight”. Venkateshwar also cut its target price by $ 35, to $ 175 per share. “The growth of Disney + has slowed the pace significantly,” the Barclays analyst said in motivating his downgrade.