Wall Street cautious, after having given ample proof of its resilience and its desire to race again: in yesterday’s session, the S&P 500 in fact tested a record both closing and intraday, climbing for the seventh consecutive session. At about 4 pm Italian time, the Dow Jones rose by 0.38% to 35,736 points, while the S&P tested new highs, albeit with a limited gain, oscillating around the 4,553 level. The Nasdaq lost 0.37% to around 15,158.
All three US equity indices are preparing to conclude their third consecutive week of rises, which also allowed the Dow Jones index to hit a new intraday record earlier in the week.
In October, all three lists gained at least 5%.
The Tesla stock today extends the earnings after the publication of the quarterly – which highlighted earnings and revenues at record levels – equal to + 3% yesterday. The electric car maker giant’s prices jumped by more than + 1% bringing the giant’s capitalization to close to $ 900 billion, three times the market value of Toyota and 35%, Barron’s points out, of the capitalization of all car manufacturers in the world. world.
“In a quarter where we expected a slowdown, and where there was concern about how profit margins would perform, it can be said that the companies still did very well,” commented Victoria Fernandez, head of market strategist. by Crossmark Global Investments.
Looking at the news of the last few hours, Snap confirms itself as the great protagonist of today’s session:
the company’s stock of the SnapChat messaging APP collapsed by about 23%, following the publication of the financial results for the third quarter of 2021.
Adjusted eps was 17 cents, better than the expected 8 cents; on the other hand, revenue was disappointing, at $ 1.07 billion compared to the expected $ 1.10 billion; daily active users around the world were 306 million, compared to an estimated 301.8 million.
To sink the title were the statements of the CEO Evan Spiegel, who spoke of the impact on the Snap business, of the changes that Apple has introduced in favor of the privacy of users of its iPhones. Apple’s new approach will be as follows: iPhone users will see pop-up windows appear on the screens of their smartphones in each of the APPs they have decided to use. The pop-ups will warn users that the APP will be tracking their data for advertising purposes, giving them the option to avoid tracking.
Snap’s CEO talked about this:
“Although we anticipated a certain degree of business problems, the new solution from Apple did not turn out as expected, making it more difficult for our advertising partners to measure and manage their advertising campaigns on iOS.”
The statements had a domino effect: in the face of the collapse of Snap’s stock prices, rival social media giants Facebook and Twitter saw their stocks sink by almost 7% in the afterhours trading on Wall Street, confirming how investors fear that other groups active in the sector may also suffer the impact of the new privacy regulations signed by Apple.
Facebook and Twitter reduce losses: Facebook falls by more than 5%, while Twitter loses more than 3%.
Also to capitulate is Intel, which has suffered the consequences of the global chip crisis. The stock suffers a thud of over 10%. The semiconductor giant’s eps came in at $ 1.71 on an adjusted basis, compared to $ 1.11 per share expected. Revenue was $ 18.1 billion, again on an adjusted basis, less than the estimated $ 18.24 billion. For the fourth quarter, the blue chip said it also expects a turnover of around $ 18.3 billion, less than the $ 18.24 billion expected by analysts.
That said, aside from Snap and Intel, the data confirms that the US quarterly season is going great.
So far, according to Refinitiv numbers, 84% of the companies that have communicated their financial statements have beaten the estimates on the eps. Refinitiv also expects profit growth of + 33.7% for the third quarter of the year.