Wall Street negative, with the Nasdaq Composite turning red: the effect of Nvidia’s rally, which clicks by more than 9%, is not enough. The Dow Jones fell 0.71% to 35,675 points; the S&P 500 fell 0.26% to 4,675. The Nasdaq lost 0.39% to 15,859 points.
The chip maker announced it closed the third quarter of 2021 with earnings that beat analysts’ expectations and revenue jumped 50% year-on-year to $ 7.1 billion, better than the $ 6.81 billion expected by analyst consensus. interviewed by Bloomberg. Earnings per share came in at $ 1.17, up from $ 1.11 expected. The title is strong from a race equal to + 125% since the beginning of the year. The Nvidia effect was also perceived by other stocks of companies active in the chip sector such as Advanced Micro Devices + 2.8%. Qualcomm and Micron Technology, which initially seemed to benefit from the Nvidia effect, instead reset the initial gains.
GlobalFoundries very well, up about 3.5%, which announced that it has signed a partnership with Ford to help the auto giant increase its chip offering.
Cisco instead collapsed, which yesterday, after the end of the session, announced that it had reported a turnover, in the third quarter of the year, lower than analysts’ expectations, also issuing a weaker than estimated guidance on its balance sheet. The stock of the networking group for the Internet capitulates by more than 9%.
Boeing turns around, which fails to benefit from the positive note of JP Morgan analysts, according to which the stock of the American aerospace giant has a significant upside given that the company is solving several problems that have besieged it in the last years.
Kraft Heinz was down, down 3.5% after the multinational announced a sale of common shares.
Alibaba suffers a drop of nearly -11%, which announced that it ended the third quarter with worse than expected sales and earnings. The e-commerce giant has discounted the slowdown in economic growth in China and the attacks the Beijing government has launched against the same giant founded by Jack Ma. In the quarter ending in September, its second fiscal quarter, Alibaba cashed in revenue of 200.69 billion yuan ($ 31.4 billion), lower than the expected 204.93 billion yuan, up 29% year-on-year. The eps stood at 11.20 yuan, less than the 12.36 yuan expected, down 38% on an annual basis. Alibaba also cut fiscal year revenue guidance.
On the Wall Street trend Jim Paulsen, chief investment strategist for Leuthold Group, noted that “the latest economic data remains solid” but also that “today’s equity trend indicates that the market is already pricing in the new wave. of Covid “.
“Concerns about Covid – added Paulsen – have also led ten-year interest rates on 10-year Treasuries to fall for the first time in six days (currently down to 1.58%), and have exerted pressure on the drop in commodity prices, including the significant drop in crude oil prices. If inflation were to continue to rise and at the same time a new wave of Covid was once again weighing down the real economy, we could find out how the stock market would handle. a pseudo-stagflationary epiodine “.
Meanwhile, oil prices recovered, after yesterday the WTI contract traded on New York’s Nymex had lost up to -3% and Brent had slipped by 2.6%, following rumors reported by Reuters, according to which the The Biden administration of the United States would have asked major raw food consuming countries, such as China and Japan, to consider the option of drawing on their respective strategic reserves in a coordinated way, in order to lower oil prices.
At 16.20 Italian time, the WTI contract is up 0.09% to $ 78.40 a barrel and Brent is up 0.36% to $ 80.58.