Takes One Bad Apple To Spoil the Semi's | Wall Street Today
Indexes opened cautiously green but fell after treasury yield pullbacks were insufficient to keep stocks afloat. ASML, a maker of semiconductor chip manufacturing equipment, fell dramatically on earnings, spelled a warning for the semiconductor industry.
Just past 4 PM EST, the preliminary closing figures showed the $S&P 500 Index traded -0.58%, the $Dow Jones Industrial Average fell 0.12%, and the $Nasdaq Composite Index fell 1.15%.
MACRO
Beige Book as Boring as Ever
The Fed released the Beige Book economic summary on Wednesday. Industry contacts from across the country predicted that inflation would hold steady at a slow pace soon.
Of the twelve districts reporting, most found a slightly expanding economy with evidence of increased consumer spending. In the labor market, nine of twelve districts reported slow, modest increases in employment. Fed contacts reported that wages grew slower, returning to historical averages.
Inflation ran at the same rate as the last report in March when it came to price increases. Half of the districts noted an increase in energy prices. Manufacturers and companies across the company said it was more difficult to pass price increases along to consumers. The Fifth District of Richmond mentioned the collapse of the Francis Scott Key Bridge as worrying, but it has not yet been directly linked to the economic slowdown.
Tuesday, Federal Reserve Chair Jerome Powell said recent macroeconomic data showed, "a lack of further progress on inflation this year," at a Canadian macroeconomic speaking event in Washington D.C.
The $U.S. 2-Year Treasury Notes Yield(US2Y.BD$ fell past 5% toward 4.92%, while the $U.S. 10-Year Treasury Notes Yield(US10Y.BD$ fell to 4.58%.
"A year from now, we'll have more answers," Powell said.
SECTORS
Semiconductors went down the drain in sectors after ASML posted a billion less in net income than in the previous quarter. The firm produces lithography machines that are essential for the production of chips. The market expected net bookings of EUR5.10 billion for the firm's first quarter, but ASML reported EUR3.61. That drop showed up in net income and pulled down investor expectations of the semiconductor companies further along the supply chain.
$ASML Holding(ASML.US$ fell 7%, that largest decline in the Nasdaq 100. $Arm Holdings(ARM.US$, a designer of chips was hit harder, down 11%. $Advanced Micro Devices(AMD.US$ fell 5%, and even $NVIDIA(NVDA.US$ fell 3.3%, pulling down the entire market.
MOOVERS
United Flys on Earnings
$United Airlines(UAL.US$ shares jumped at open as the best-performing stocks in the S&P 500 after the firm defied Boeing-related problems to post a narrower-than-expected loss in the first three months of the year.
The industry rose alongside UAL, with $American Airlines(AAL.US$ climbing 2.3%, and Delta Air Lines climbing 3%. $Frontier Group(ULCC.US$ climbed 7%
Largest Percent Increase in One Day For Truth Social
$Trump Media & Technology(DJT.US$ climbed 10%, after a 48% drop since the beginning of April. The show's star, former President Donald Trump, hit the news this week after appearing in a Financial District New York City Court for a criminal trial. His firm recently announced it planned to launch a live TV service shortly after issuing an additional 21 million shares.
Autodesk Refused to Post Earnings
$Autodesk shares are trading 7% lower Wednesday after the application software company announced that it will not file its annual financial results within the required period.
Travelers Moves South
$The Travelers Companies took a 7% hit Wednesday after the property casualty insurer missed expectations for first-quarter profit.
Mooers, what are you watching?
Source: Bloomberg, Dow Jones, CNBC, Reuters
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See thislinkfor more information.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See thislinkfor more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Money Thrill : I live not far away from ASML. EVERYBODY knows the slow down because of the restrictions from VS towards China! Not a problem and expectations are very GOOD! They are even looking for many new employees because of high prospects.
Daniel Jeya Raman Money Thrill: This too, will pass. All things will come to a reverse soon.
104653463 : why SOXL dropping like hell?
On Paris : Good morning
Devando223 104653463: It’s a 3x leverage stock comprised mostly of Nvidia and other semiconductor stocks so when they fall 3% soxl falls 9%
Money Thrill Money Thrill: And very important ... the CEO is gone as a retiree. Now the new CEO, an insider, will take a completely new course and will have more courage (restrictions? ) for sales. The older CEO was more cautious due to age.
