Wall Street mixed ahead of PCE data: Nasdaq loses big as Big Tech falls

The positive opening for U.S. indicators comes from the inflation data the Fed watches most closely, personal consumption, personal spending and income, which rose as expected in April, showing no year-to-year changes. Thus PCE increased by 0.3% in April up to 2.7%, while the base datawhich excludes fresh food and energy will increase from 0.2% to 2.8%no changes compared to the previous month.

However, the good initial reading was again disrupted by a mixed reading of the data, which supported buying in the Dow Jones, but led to selling in the rest of the indicators, especially in the Nasdaq, with values ​​such as NVIDIA. , giving away more than 1%, as well as Amazon, Netflix, and Meta (Facebook), with cuts of more than 2% in all cases.

In fact, the DOW JONES index – the most punished indicator over the past two days by both American Airlines on Thursday and Salesforce on Friday – rose 0.17% to 38,174.75, while the S&P 500 trailed just over half a point to 5,207 and the NASDAQ 100 Index fell 1.27% to 16,552.38 points in the middle of the session.

Yesterday, Thursday, Wall Street completed a losing session. The Dow Jones index closed down more than 300 points, down 0.9%, as it was hit hard by the collapse of Salesforce. The S&P 500 fell 0.6%, but the biggest hit was the tech-heavy Nasdaq Composite, which fell 1.1%. This time, even NVIDIA (-3.77%) was not saved from burning after it became known that The US government intends to slow down the issuance of licenses for the export of chips related to artificial intelligence.

In general, the week, shorter than usual due to the day off on Monday, turned out to be quite eventful. As of Thursday’s close, the S&P 500 and Nasdaq Composite are on track to end a five-week winning streak, while Dow Jones falls for second week in a rowas rising Treasury yields undermined investor confidence.

To be sure, stocks are coming off a very strong month, with the three major indexes posting their sixth month of gains in the last seven. The Dow Jones Industrial Average is up 0.8% this month, while the S&P 500 is up 4%. The Nasdaq Composite Index is up about 7% and is on track for its best month since November 2023, when it rose 10.70%. Far from the famous “sell in May…”.

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In fixed income markets, bond yields decline after PCE. He Ten-year bond yields fell significantly to 4.508%, a week in which it reached 4.6%. Two-year bonds offer a yield of 4.908%, which is also clearly negative.

Results rain on Wall Street

In business today, investors have to digest a large number of quarterly results, and the results are uneven. The reports presented by Dell Technologies last night were particularly poorly received. His actions They fell more than 16% at the opening, after yesterday’s session closed, in addition, the fall was 5.18%.

And this, in principle, exceeded market expectations. Dell reported adjusted quarterly earnings of $1.27 per share on revenue of $22.24 billion. Analysts had forecast earnings per share of $1.26 on revenue of $21.64 billion.

The opposite case for The gap in the stock market has increased by 25.2% after yesterday’s close with an increase of 4%.. The textile retailer reported quarterly profit of 41 cents per share and revenue of $3.39 billion. Analysts had forecast earnings of 14 cents per share and revenue of $3.29 billion.

Costco Wholesale reported earnings of $3.78 per share on revenue of $58.52 billion. Analysts had forecast earnings per share of $3.70 on revenue of $58.07 billion, although it barely lost ground in the opening minutes of trading.

NetApp shares rose more than 1.3% after beating market expectations. The data storage company reported adjusted earnings of $1.80 per share on revenue of $1.67 billion. Analysts surveyed had forecast earnings per share of $1.79 and revenue of $1.66 billion.

Marvell Technology barely budged, correcting a 3% decline before the open. After adjustments, the semiconductor company earned 24 cents per share on revenue of $1.16 billion. Both figures were below market expectations, which had forecast earnings per share of 25 cents and revenue of $1.17 billion.

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Department store retailer Nordstrom is set to turn around despite apparently negative pre-opening results as it reported a wider-than-expected first-quarter loss of 24 cents per share, compared with the 8 cents per share loss expected by analysts. On the other hand, revenue reached $3.34 billion. higher than analysts’ forecasts of $3.2 billion.

In commodity markets, oil prices remain unchanged pending inflation data, as well as with an eye to the OPEC+ meeting this weekend. US West Texas crude futures were trading 0.36% higher at $78.22 a barrel, while European benchmark Brent crude was up 0.51% at $82.30.

Today, the euro is up 0.40% against the dollar, weakened after the PCE data, reaching an exchange rate of $1.08 per community currency.

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