Wall Street extends declines after jobs: Amazon and Intel pressure the Nasdaq

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By TP


Wall Street extends the falls this Friday after the strong sales Thursday and after investors learned of a official employment report which has shown a greater slowdown than expected with 114,000 new payrolls. The market also negatively discounts the results of Amazon and Intel. «The publication of the US unemployment claims datahigher than expected, and the manufacturing sector activity indices (PMI and ISM), both in contraction territory alarmed investors, given the possibility that the delay by the Federal Reserve (Fed) in beginning the process of lowering interest rates could lead to a recession of the US economy,» analyzes Link Securities. For his part, Russ Mould, investment director of AJ Bell, indicates that «A down economy is a catalyst for a central bank to cut rates and hopefully stimulate activity. This thought process is likely to be top of the Fed agenda this week following shocking US economic data that included higher than expected jobless claims and a contraction in manufacturing. The narrative has changed from rate cuts equaling good news to rate cuts equaling recession-avoiding measures«. At its last monetary policy meeting, the Fed left interest rates unchanged, although its chairman, Jerome Powell put a rate cut on the table in September if the data accompanied. In this sense, although the Fed's main objective remains to return inflation to its 2% target, its attention is shifting to the working marketwhich has softened in recent months. Therefore, all eyes have been on the key data of the week: the official employment report, which has surprised on the downside with the creation of 114,000 payrolls in July, while the consensus expected a smaller relaxation, to 114,000 175,000 new jobs.
When analyzing these figures, Naeem Aslaminvestment director at Zaye Capital Markets, says that «the real question now is whether the Federal Reserve will continue to consider this as a fact or a trend in the data«. «If we look at the numbers, it is now very clear that The Federal Reserve has made another policy mistake and rates should have been cut, and there is no time left. In other words, traders and investors are now worried about recession fears. As for the stock markets, once the dust settles, bad news may turn into good news,» he details. weekly computationwith the current session still to come, the New York indices are on track to end a week marked by losses in which the Nasdaq 0.9% is left, S&P 500 0.2% and the Dow Jones 0.6%.

APPLE, AMAZON AND INTEL

At the business level, this Friday the spotlight falls on Amazon, Apple and Intelwho presented their shares last night after the market closed results quarterly. In the case of iPhone manufacturerits shares rise 1.24% on Wall Street after earn 21.448 billion dollarswhich represents a 7.9% increase compared to the 19.881 billion harvested in the same period of the previous year. income also they have been raised by 5%beating analysts' forecasts. Instead, Amazon falls sharply (-9.73%) after disappoint both with their income and with their guidanceThe e-commerce giant has obtained a Net profit of 13.485 billion dollarsa figure that has allowed it to exceed the 6.75 billion of the second quarter of the previous year. But the income were at $147.98 billion, below the anticipated $148.56 billion. The most significant sales were for Intelwhich fell 27% after reporting a Losses of 1.61 billion dollars and anticipate that will lay off 15% of its workforce within a 10 billion cost-cutting plan of dollars.

OTHER MARKETS

In other markets, oil West Texas down 2.25% ($74.55) and the Brent fell by 1.96% ($77.93). Meanwhile, the euro It appreciates 0.91% ($1,089), and the ounce of gold earns 1.10% ($2,508). In addition, the 10-year US bond yield relaxes to 3.854% and the bitcoin adds 2.67% ($65,025).