The shares of North American companies deepened their fall on the New York Stock Exchange, with the Dow Jones losing more than 2% and the Nasdaq 3% at mid-day, in a market concerned about consumption, the engine of the United States economy.
After poor prospects announced by some retail groups, with Target stores losing 25%, all 11 sectors of the S&P 500 were in the red. The big names in technology also fell: Amazon lost 5.21%, Apple 3.77%, and Netflix 3.84%.
The big names in technology also fell: Amazon lost 5.21%, Apple 3.77%, and Netflix 3.84%.
On Tuesday, the indices rebounded, driven precisely by technology and the search for good deals, after seven weeks of losses on the Nasdaq.
The spectacular fall in the stock of Target supermarkets, from 25% to 160 dollars per paper – a rare fall in the retail sales sector – drew the attention of investors, as it showed the impact of rising prices on consumption and company profits.
The president of the firm, Brian Cornell, after the drop in quarterly profits, complained about cost increases and warned that sales would fall in 2023.
For Peter Cardillo of Spartan Capital, “the decline in the indices reflects a combination of factors, in particular profit-taking by investors, bad news from companies and a mediocre indicator with the fall in new home construction.”
“People are buying expensive products less and less, and turning to generic products,” said Gregori Volokhine of Meeschaert Financial Services.
“Low-income (citizens) shop at Walmart; the middle income is people who shop at Target. So (inflation) is starting to go up the pyramid,” he said.
“The reality is not too good for consumption. You have to be realistic,” he concluded.
Risk country
The Argentine country risk advanced 1.1% to 1,946 points.
Source: Ambito
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