Stocks slumped after Microsoft Corp. warned about a slowdown in sales, fueling concern that even stalwart of the technology industry is getting hit as the economy cools. Shares of the software giant tumbled more than 4%, putting the Nasdaq 100 on track for its worst rout in a month. Texas Instruments Inc., one of the world’s largest chipmakers, sank after suffering its first sales decline since 2020 and giving a tepid forecast. After the closing bell, two other bellwethers — Tesla Inc. and International Business Machines Corp. will report their numbers.
Fourth-quarter earnings for tech firms in the S&P 500 are projected to drop 9.2% from the same period a year earlier, the steepest slide since 2016, data compiled by Bloomberg Intelligence show. The speed of the deterioration in sentiment is notable: Three months ago, Wall Street merely saw profits coming in flat.
“If earnings reports continue to be disappointing, it’s going to be very hard to argue that the market can rally further because the negative news has already been priced-in, given that the stock market has rallied quite nicely so far this month,” said Matt Maley, chief market strategist at Miller Tabak. The US equity benchmark is poised for its best January since 2019 after a rally that was driven by expectations the Federal Reserve will moderate its rate hikes. Still, this year’s rebound comes at a time when the economy is heading for a downturn, which could set the stage for a selloff, according to JPMorgan Chase & Co.’s Marko Kolanovic. “Fundamentals are deteriorating, and the market has been moving up. So that has to clash at some point,” the bank’s chief global markets strategist told CNBC. In other corporate news, Boeing Co. reported a surprise loss to end 2022 — its sixth straight money-losing quarter — as higher costs slowed the planemaker’s recovery even though a late flurry of jet deliveries drove a surge in cash. AT&T Inc.’s profit and free cash flow forecast for 2023 missed analyst estimates as the wireless carrier invests in network improvements. NN: This stock market rally attempts are like sending a hooker flowers. Her and her pimp will have a big laugh and charge you double!
NN2: I am sure this war we are in is far from over. Its the most overvalued poised on the edge of a cliff market i have ever seen. And i have seen a lot. I am sure a crash is coming… But the reality is we will be tested to our limits….. Is that really something new for you?
Bank of Spain is good… But the bank of New York is better cause they have far more money…. Besides they wore masks to.