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Takes One Bad Apple To Spoil the Semi's | Wall Street Today

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Moomoo Recap US wrote a column · Apr 17 15:10
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.
Takes One Bad Apple To Spoil the Semi's | Wall Street Today
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.
"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.
Takes One Bad Apple To Spoil the Semi's | Wall Street Today
$ASML Holding(ASML.US)$ 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
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