The Dow Jones looks askance at 40,000 points; the Nasdaq and the S&P 500 fall

The Dow Jones looks askance at 40,000 points; the Nasdaq and the S&P 500 fall
The Dow Jones looks askance at 40,000 points; the Nasdaq and the S&P 500 fall

The DOW JONES rose a slight 0.06% to 39,830 points, while the S&P 500 fell 0.17% to 5,299 points. The NASDAQ 100 fell 0.43% to 16,723 points.

Those moves come after a mixed day on Wall Street on Monday. The Nasdaq Composite reached a new intraday and closing high, finally rising 0.65% to 16,794 points. The index was lifted by NVIDIA which rallied 2.5% as investors prepare for Wednesday’s earnings report from the artificial intelligence titan. Today the company loses part of the ground gained yesterday.

The S&P 500 rose almost 0.1%, while the Dow Jones fell 0.49% dragged down by a 4.5% drop for JPMorgan Chase after CEO Jamie Dimon announced on the one hand that his retirement it could be sooner than expected; and, on the other, that the bank will not buy back many shares at their current prices. The bank rises slightly today.

The Dow Jones ended Monday’s session below the 40,000 levelafter closing above it for the first time last week.

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“The disinflation story is still intact,” believes Keith Buchanan, portfolio manager at Globalt Investments. “The market will continue to rise if earnings can confirm the rigidity of corporate profitability.” But “that could lead to a market where we could be somewhat range-bound, maybe even down.”

In that regard, investors will closely follow the speeches of several Federal Reserve speakers, including Governor Christopher Waller, Richmond Fed President Tom Barkin, and Atlanta Fed President Raphael Bostic. Operators will be attentive to any clue they may give about the future path of interest rates, waiting for the minutes of the last monetary policy meeting to be known tomorrow.

In fixed income, always very sensitive to possible changes in monetary policy, the yield on the US ten-year debt bond relaxes to 4.404%while the two-year bond offers a yield of 4.831%.

In the business sector, Macy’s recorded increases of more than 3.5% at the opening of the session. The retail giant has exceeded Wall Street forecasts with its quarterly profit figure and has indicated that there are first signs of momentum in its strategy of changing course. The company posted earnings of 27 cents per share, adjusted, versus the 15 cents the market had anticipated. Revenue was somewhat below expectations, with a figure of 4.85 billion compared to the 4.86 billion predicted.

Regarding its expectations for the year as a whole, Macy’s anticipates net sales of between 22.3 billion and 22.9 billion, below the 23.09 billion in 2023. Adjusted earnings per share will be between $2.55 and $2.90, raising its previous outlook of $2.45 to $2.85.although the company continues to see 2024 “as a year of transition and investment.”

Another of the protagonists is Lowe’s, with increases of 2.4% in the first stages of the negotiation. The home improvement retailer has posted earnings and revenue that exceeded expectations: Earned $3.06 per share on revenue of $21.36 billion. Analysts had expected earnings of $2.94 per share and revenue of $21.12 billion. Comparable store sales, a key metric for retailers, fell 4.1%, less than the consensus expectation of a 5.5% drop.

Much worse reception for the accounts presented last night by Palo Alto Networks, which sinks more than 7% at opening. In the quarter ended April 30, the security and network management company posted adjusted earnings per share of $1.32 on revenue of $1.98 billion that increased 15% from last year.

Both figures were better than expected, with analysts expecting adjusted earnings per share of $1.26 and revenue of $1.97 billion. For its fiscal fourth quarter, Palo Alto Networks expects adjusted earnings per share of $1.40 to $1.42 and revenue of $2.15 billion to $2.17 billion.

Zoom Video drops 2% even after beating market expectations with earnings of $1.35 per share on revenue of $1.14 billion. Analysts had expected earnings of $1.20 per share and revenue of $1.13 billion. The video conferencing company has issued full-year revenue guidance roughly in line with expectations.

Keysight Technologies falls 2.7% after presenting weak forecasts for the current quarter. The company expects earnings per share between $1.30 and $1.36 and revenue in the range of $1.18 billion to $1.2 billion. Analysts surveyed had forecast $1.45 earnings per share and $1.21 billion in revenue.

Outside of earnings season, 4% drops for Peloton. The connected exercise bike company has announced that will begin a “global refinancing” process which will include the offering of $275 million in convertible senior notes due 2029 and the signing of a five-year loan worth $1 billion. It also plans to buy back $800 million of its current debt.

Peloton, which was one of the hottest companies during the pandemic, has struggled with declining sales over the past year and recently announced a restructuring plan.

In raw materials markets, oil prices are falling due to concerns about demand, which leave international tensions in the background. The benchmark Brent in Europe fell 1.22% to $82.69 per barrel, while US West Texas futures fell 1.39% to $78.20.

The euro rose 0.07% against the dollar, leaving the exchange rate at 1.0868 dollars for each community currency.

Special mention today for cryptocurrencies, with ether soaring 20% ​​in the last 24 hours and Bitcoin near its all-time highs amid rising expectations that an Ethereum ETF will be approved this week.

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