Home » Wall Street: US futures weak, Intel weighs on the Nasdaq. Focus on Visa and Chevron

Wall Street: US futures weak, Intel weighs on the Nasdaq. Focus on Visa and Chevron

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Wall Street: US futures weak, Intel weighs on the Nasdaq.  Focus on Visa and Chevron

Futures on Wall Street down, after the positive session of the US stock market on the eve, which saw the Dow Jones index gain more than 205 points (+0.61%), reporting the fifth consecutive session of increases, the longest since month of October.

The S&P 500 rose by 1.10%, while the Nasdaq, supported by the post-quarterly Tesla buy boom (stock +11% approximately), jumped by 1.76%.

Since the start of the week, the Dow Jones and S&P 500 have raked in gains of 1.7% and 2.2% respectively, while the Nasdaq has rallied 3.3%, and is heading towards the end of the month best since last July.

At around 1.27pm GMT, Dow Jones, S&P 500 and Nasdaq futures reflect investor caution, but selling is limited. Dow Jones futures are up 0.04%, while futures on the S&P 500 and the Nasdaq slip 0.22% and 0.41%.

The Nasdaq is pricing in sharp sells on Intel stock today (down nearly 10% in afterhours trading) after the chip giant reports rather bleak Q4 2022 accounts and Q1 2023 outlook . Intel also affects other chip stocks, such as Advanced Micro Devices and Nvidia.

Intel announced it finished the last three months of last year with adjusted EPS of 10 cents, half the 20 cents expected by analysts polled by Refinitiv.

The semiconductor giant reported a net loss of $664 million in the fourth quarter of 2022, compared with earnings of $4.62 billion in the same period of 2021. Revenue came in at $14.04 billion, down from $14 .45 billion estimated, marking a 32% year-on-year decline.

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Visa’s accounts were also announced yesterday, which beat expectations.

The U.S. credit card and digital payments giant announced it reported fourth-quarter 2022 adjusted EPS of $2.18 and revenue of $7.94 billion, ahead of Refinitiv’s estimates of $2 earnings per share. 01 and revenues of $7.70 billion.

A little while ago the accounts of the American oil giant Chevron were disclosed, which in the last few hours announced a buyback plan worth 75 billion dollars and an increase in dividends.

In the fourth quarter of last year, Chevron reported EPS of $4.09, below consensus expectations of $4.38 per share.

The data on US GDP for the fourth quarter of 2022 was published yesterday in the United States: American GDP rose at the annualized rate of 2.9%, beyond the +2.6% expected by the consensus of analysts.

The US economy does not seem to be slowing significantly: and this could be a problem for Jerome Powell’s Fed, who has left no doubts about his intention to significantly curb the economy’s fundamentals, so as to be able to slow down also the race of inflation.

The meeting of the FOMC, the monetary policy arm of the Fed, is approaching. The meeting will start next Tuesday 31 January, to end with the announcement on rates on Wednesday 1 February.

Markets expect Jerome Powell & Co. to hike fed funds rates further by 25 or 50 basis points.

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