July 1, 2022

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Wall Street is back in the red after yesterday's increases

Wall Street is back in the red after yesterday’s increases

The Dow Jones Industrial Average It fell 1.02% at the opening to 32,321 points, while it declined Standard & Poor’s 500 It fell 1.22% to 4,038 points. For his part, the Nasdaq 100 1.47% is left to 11,808 points.

On the macroeconomic level, investors knew before the opening Housing Starts Datawhich fell 0.2% in April to an annual rate of 1.72 million residential homes, somewhat lower than the market had expected.

The market also continues to digest the recent intervention of Federal Reserve Chairman Jerome Powell, who admitted on Tuesday that while it “could be some pain in restoring price stability,” he believes the institution will be able to “maintain a strong labor market.” Powell also said that there is still “broad support” for a 50bp rate hike at upcoming Fed meetings.

“I don’t think he said anything to surprise us…but let’s not forget where we are,” warns Ryan Dettrick, chief market strategist at LPL Financial, noting that the S&P 500 has fallen for six straight weeks. “It hasn’t gone down seven straight weeks for 20 years, so we’re terribly oversold. Things aren’t perfect, but we think a lot of the negativity that’s been put into the price… is a bit exaggerated for us, and we think that might be An opportunity for some long-term investors.”

However, concerns about price hikes, geopolitical concerns in Ukraine and the turmoil related to Covid-19 in China remain risks to Wall Street. Goldman Sachs just cut its growth forecast for China from 4.5% to 4% due to the shutdown. The bank does not believe that the control measures will be completely removed for at least a year, in the second quarter of 2023.

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Retailers are under severe pressure

Moreover, while consumers continued to spend amid rising inflation, this happened at the same time Many companies absorb the rising costs of labor, raw materials, and transportation. Walmart Yesterday it reported weaker-than-expected quarterly earnings and lowered its earnings outlook for the year, citing higher wages and ongoing costs related to supply chain disruptions. Its shares are down 1.6% today after dropping 11% yesterday.

Another retailer who defrauded their account is Goal, which is down 24% in the pre-Wall Street open period. Its profit fell 52 percent from a year earlier to $1.01 billion, or $2.16 per share, in the quarter ended April 30. Adjusted earnings per share were $2.19, well below Wall Street expectations of $3.07 per share.

The most positive note comes from the revenue side, which increased 4% to $24.83 billion in the first quarter. Analysts expected $24.48 billion.

Today was also a turn com loy, down 3.9% at open. The DIY-store chain’s net profit rose to $2.33 billion, or $3.51 per share, from $2.32 billion, or $3.21 per share, a year ago.

However, comparable store sales fell 4% in the previous year’s first quarter, versus the market’s expected 2.5% decline. Lowe’s reiterated his goals for this year.

Outside the retail sector, the chip maker Analog devices It reported adjusted quarterly earnings of $2.40 per share, 29 cents above estimates, while revenue was also higher than expected. The company explained that it has been able to increase production despite supply chain problems, and that demand remains strong. Its shares are up nearly 2% when the market opens.

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Regarding the recommendations of the analysts, universal carrier It fell 2.7% after Bank of America lowered its advice from “buy” to “neutral”.

The United States will ease sanctions on Venezuela to increase oil production

In the commodity markets, oil prices are moving without a clear indication after the easing of restrictions in China, and they appear to be promising higher demand, while supply remains a concern. To address this concern, the United States could ease sanctions against Venezuela.

US President Joe Biden will authorize chevron to negotiate with the government of Venezuelan President Nicolas Maduro, and temporarily lift the ban on such talks.

The decision to ease some energy sanctions on Venezuela comes at a time when the United States has been looking at ways to allow Venezuela to begin producing more oil and selling it on the international market, thereby reducing the world’s energy dependence on Russia.

As for the barrel of West Texas, it paid 111.22 dollars, a decrease of 0.17%, while the barrel of oil recorded Oil futures contracts The benchmark Brent index in Europe fell 0.59 percent to 113.23 dollars a barrel.

In the debt markets, the yield on US 10-year debt securities again approached 3%, settling at 2.99%.