Rebound Day Turned Red and Earnings Helped Declines | Wall Street Today
Wednesday began with another rebound trading session, but after noon indexes began to pullback. For the day, the once positive market finished down, and each index continued lowering into correction territory.
Just past the 4 pm close, the $.SPX.US$ fell , the $.DJI.US$ fell 0.60%, and the $.IXIC.US$ fell 1.05%.
MACRO
The CBOE's Volatility Index (VIX), known as the fear gauge, traded 0.3% lower before climbing 1.95%. Earlier in the session, the indicator seesawed, down as much as 12% and almost breakeven, signaling trepidation among market participants.
According to MarketWatch, those fears were sparked by a substantial miss in July nonfarm payrolls. Fears subsided by midweek, according to the probability of a 50 basis point cut in interest rates. Most Treasury yields jumped intraday, with the 10-year up 6.8 basis points to 3.95% and the two-year rate 3.5 basis points higher at 4.02%.
Reuters reported that Bank of Japan Deputy Governor Shinichi Uchida's comments Wednesday that the central bank would not raise rates amid financial market instability pushed the yen lower and helped improve market sentiment, Reuters reported.The central bank's surprise rate hike on July 31 contributed to the global market crash Monday as the decision kicked off an unwinding of the so-called yen carry trade.
SECTORS
By industries, public solar panel companies were climbing Wednesday after Sunrun posted a surprise profit Wednesday. $RUN.US$ jumped 11% after a profit of 55C a quarter instead of a 33C loss expected. The firm also said it was partnering with Tesla Electric to build a power plant in Tesla.
$CLmain.US$ climbed 2.96% after Wednesday Crude Oil Inventory numbers dropped 3.7M, more than twice what was expected. $BTC.CC$ fell $56k, and gold and silver both climbed. $US2Y.BD$ remained below 4%, and the $US10Y.BD$ climbed. Every top moving industry was red on moomoo, and the "Volatility" stock collection was the highest performing.
MOOVERS
In company news, Fortinet ( $FTNT.US$) reported Q2 adjusted earnings and sales late Tuesday above market expectations and boosted its full-year 2024 guidance. Shares soared 27% intraday, the top gainer on the S&P 500 and the Nasdaq.
Super Micro Computer ( $SMCI.US$) shares slumped more than 18%, the worst performer on the two indexes, as the company reported fiscal Q4 adjusted profit that trailed analysts' projections.
Airbnb's ( $ABNB.US$) Q2 earnings performance was "tough" due to slower demand and increased marketing expenses, RBC Capital Markets said in a note. "We believe the company is facing a textbook multiple compression situation driven by higher marketing spend into slowing demand." Shares slumped past 13%, joining the laggards on the two indexes.
$NVO.US$, dthe Wegovy and Ozempic seller saw its stock fell 8% after the firm said on Wednesday its profit rose 3% to 20 billion Danish kroner ($2.93 billion), or 4.49 kroner a share. Alpha expected profits of 21.29 billion kroner on sales of 68.47 billion kroner.
$DIS.US$ Walt Disney posted a streaming business profit on Wednesday, but the firm signaled that consumers were spending less than expected on theme parks. Disney's experiences segment drove a 2% revenue increase to $8.39 billion, below estimates of $8.59 billion. The firm also said Wednesday it may have to pay an additional $5 billion to Comcast's NBC Universal unit for its 33% stake in Hulu.
$RDDT.US$ stock fell 6% after the firm reported a second-quarter loss of 6C a share. The firm reported 91 million daily active users, marking a 51% year-over-year increase. revenue of $281 million, a 54% rise that exceeded expectations.
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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 this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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