Economy News Shares

Wall Street opens lower as tech stocks lag

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Wall Street: The New York Stock Exchange opened lower on Friday, hurt by disappointing announcements from Apple and Amazon, which illustrate the effects of supply chain tensions on companies.

The Dow Jones Industrial Average opened flat at 35,740.28 points. Standard & Poor’s 500 is down 0.28% at 4,583.54 points, while Nasdaq Composite is down 0.51% at 15,369.044.

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Apple reported lower-than-expected quarterly sales due to supply chain problems. The company expects even bigger disruptions in the current quarter.

As a result, the group loses its place as the world’s first capitalization to Microsoft, increasing by 0.36%.

Due to the lack of manpower, Amazon lost 3.41% after publishing its forecast for the last quarter of the year.

Meanwhile, oil giants Chevron and Exxon Mobil gained 1.22% and 1.34% after posting strong quarterly earnings. Meanwhile, AbbVie gained 2.13% after raising its annual profit forecast.

Along with the results of listed companies, Wall Street investors are worried by the high inflation rate. The core PCE price index increased by 3.6% year-on-year, as in the previous month, compared to the expected 3.5%.

As reported earlier by the Commerce Department, U.S. personal spending grew by 0.6% in September after increasing by 1.0% in August. It is reflecting what appears to be a temporary hit from the Delta variant Covid-19 virus. The core personal consumption expenditure basket increased 0.2% on a month-over-month basis. Furthermore, it showed a slight slowdown from August’s 0.3% increase.

Immediately after the publication of this measure of inflation favored by the Federal Reserve (Fed), the yield on the 10-year Treasury note reached its highest level of the day, 1.619%, and the dollar (+0.4%) strengthened against a basket of international currencies.

As part of the central bank’s monetary policy meeting next week, the U.S. central bank could start reducing its asset purchases gradually.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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