Dow Jones and Nasduck are correct

Wall Street, where technology stocks dominated last night, lost a lot of ground on Wednesday. The S & P 500 fell 1.91% to 4,011 points, the Nasdaq fell 2.04% to 11,740 points, and the Dow Jones fell 1.63% to 32,122 points. At Nymex, the barrel of WTI crude rose 0.2% to $ 109.8. One ounce of gold fell 0.4% to $ 1,811. The dollar index rose 0.2% against a basket of benchmark currencies. Bitcoin has a deficit of less than $ 30,000.

According to a government report on the day of the U.S., housing starts in April 2022 were at a rate of 1,724 million, compared to a FactSet consensus of 1.76 million units, which was revised to 1,728 million last month. came out. On the other hand, building permits were settled at a rate of 1,819 million, and the consensus on the period was 1.81 million. There were 1.87 million permits a month ago.

Crude oil prices have risen slightly after the announcement of a sharp decline in US oil reserves last week. According to the US Department of Energy, domestic crude oil inventories, excluding strategic reserves, fell 3.4 million barrels to 420.8mb in the week ending May 13. The consensus was an increase of 1.4mb. Gasoline inventories fell by 4.8 million barrels (-1.3 mb consensus) and distillate product inventories fell by 1.2 million barrels (-0.8 mb consensus).

Jerome Powell said Tuesday that the central bank could land the U.S. economy “almost mildly” rather than causing a recession until inflation clearly showed signs of easing. He said he would continue to tighten. Thus, at a meeting hosted by The Wall Street Journal, the Fed’s head asserted that the Fed’s plan was to gradually raise the key rate by 0.5 points at the next meeting. However, he did not rule out a significant increase of 0.75 points as needed.

The Federal Reserve will need to “see clear and compelling evidence” that inflation is easing before slowing the pace of rate hikes. “If you don’t see it, you should consider acting more aggressively,” Jerome Powell said. “If that means raising rates higher than what is generally considered neutral, we wouldn’t hesitate to do so,” he said. The “neutral” level of the “federal funds” interest rate of the economy is being discussed, but is generally considered to be around 2.5%.

Asked about the risks of causing a recession, Powell compared this route to “a somewhat turbulent plane descent,” saying that “there are several possible routes to landing … almost soft.” However, he admitted that it could be “a little pain” for Americans, but argued that inflation needed to return to the Fed’s medium-term target of 2%.

Powell’s statement is because many economists believe that if credit conditions are too tight, the US economy is at high risk of recession. It is expected to have caused a stock market revision in the last few weeks.

Commenting on stock market volatility, the Fed’s head estimated that financial markets remained in good shape and were functioning properly despite recent volatility.

Markets continue to speculate on the extent of the FRB’s expected monetary tightening as US inflation, stimulated by the war in Ukraine, reached 8.5% year-on-year and 8.3% in April. And a new wave of Covid in China.

Lowe’s, Target, Analog Devices, Cisco and TJX today announced their latest quarterly results on Wall Street.

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Loews (-3%), an American challenger to the Home Depot in the distribution of home products, announced in the first quarter of 2022 that same-store sales fell 4% and the US market fell 3.8%. Did. Quarterly earnings per share were $ 3.51. Net income for the quarter ended at the end of April reached $ 2.3 billion. Total revenue was $ 23.7 billion, compared to $ 24.4 billion in the first quarter of 2021. The consensus was adjusted EPS of $ 3.22 and revenue of $ 23.76 billion. The group shows that it is reaffirming its 2022 annual financial forecast. Therefore, we expect revenues in the range of $ 97 billion to $ 99 billion, compared to revenues in the range of $ 13.1 to $ 13.6.

Target, an American discount store, fell 25% on Wall Street after the first quarter account was released. Overwhelmed by supply chain constraints, the group missed a profit consensus. Adjusted earnings per share was $ 2.19, while FactSet’s consensus was $ 3.07. Therefore, after the unrelieved results announced by the giant Wal-Mart earlier this week, it is a new disappointment in this sector. Target is considering additional inflation-related costs of $ 1 billion this year, especially in shipping. Group CEO Brian Cornell said: In fiscal year 2022, the Group expects sales to grow by 1-5%, but is lowering its profit forecast due to a sharp increase in expenses. Ended quarter sales were $ 25.17 billion higher than expected, compared to the $ 24.5 billion forecast.

TJX (+ 10%), an American distribution group, announced an adjusted pre-tax margin of 9.4% in the first quarter of 2023. This year’s adjusted margin guidance has been revised upward to 9.6-9.8%. In the last quarter, Marmaxx recorded similar growth of 3%, driven by customer traffic. Quarterly adjusted earnings per share were 68 cents. By the end of April, quarterly sales were $ 11.4 billion, up 13% year-on-year. Sales are slightly below the Group’s guidance, but margins are maintained and management is still welcoming today.

Analog Devices, Massachusetts semiconductor designer, said $ 783.3 million (1.49 per title) in the second quarter, ending at the end of April 2022, compared to $ 422.9 million in the year-ago quarter. Announced net income (dollars). .. Excluding the item, adjusted earnings per share was $ 2.4, while FactSet’s consensus was $ 2.11. Revenue increased 79% to $ 2.97 billion. Adjusted operating profit more than doubled to $ 1.49 billion. In this way, ADI has made record revenues for the fifth consecutive quarter, demonstrating unprecedented demand for its technology. For the first quarter, the group expects adjusted EPS to be $ 2.42 and revenue of $ 3.05 billion.

Alphabet (-2%). According to Reuters, Google’s Russian subsidiary is considering filing for bankruptcy, but authorities have seized bank accounts, making it impossible to continue. Google has been under pressure in Russia for months not to remove content deemed illegal by Moscow and to restrict access to some Russian media on YouTube.