new York Wall Street closed in the red on Thursday, weighed down by falls in Alphabet’s share price. The Dow Jones index of standard values fell 0.7 percent lower to 33,699 points from trading. The technology-heavy Nasdaq fell one percent to 11,789 points. The broad S&P 500 lost 0.9 percent to 4081 points. Traders also justified the price reductions with rising yields on the bond market. Demand remained weak at an auction of 30-year bonds.
Before the stock markets turned negative, even higher-than-expected weekly US jobless claims had lifted sentiment in the early hours of trading. The figures briefly reassured investors after a robust US jobs report last week sparked renewed interest rate fears.
Strong company balance sheets and forecasts prevented major price losses. More than half of the 500 companies listed in the S&P index have now presented quarterly figures. Of those, 69 percent beat analyst expectations, according to Refinitiv data. That is around three percent more than in an average quarter.
Coinbase stock down
In terms of individual stocks, the shares of the US crypto exchange Coinbase are under pressure after a tweet by their CEO Brian Armstrong. The stocks fell 14.13 percent on Thursday. After the steep rise at the start of the year, the recent downward trend is thus continuing. Armstrong warned on the short message service Twitter on Wednesday evening that he had heard rumors that the US Securities and Exchange Commission wanted to abolish so-called “crypto staking” for small investors.
“I hope that’s not the case as I believe it would be a terrible path for the US if that happened,” the Coinbase CEO tweeted. He argued that staking is “a really important innovation.”
With staking, investors use their coins to update the blockchain in exchange for a reward. The practice has gained traction for Coinbase to diversify its business model and reduce reliance on trading fees. The SEC has not yet commented on the tweets.
Look at other individual values
Canopy Growth: EA loss above market expectations and massive job cuts pushed US cannabis shares lower at Canadian marijuana producer Canopy Growth. For example, Curaleaf and Tilray Brand lost five and 5.6 percent, respectively.
Disney: The US media and entertainment group Walt Disney wants to reposition itself and cut around 7,000 jobs. Disney now wants to pay a dividend again, which Peltz also requested. CFO Christine McCarthy said the dividend would likely be just a “small fraction” of pre-corona levels at first. It should then increase over time. In the past quarter, Disney’s net income rose 11 percent to just under $1.28 billion, below analyst estimates of $1.429 billion. Sales climbed eight percent to $23.51 billion, higher than expected. The stock still lost 1.27 percent.
Alphabet: In terms of individual values, shares in Google parent Alphabet fell by 4.4 percent. The background is that the Google AI “Bard” made a mistake in a promotional video. The battle of artificial intelligence is mainly fought between Microsoft and Google.
contain: US casino operator MGM Resorts is no longer interested in acquiring Entain, according to its CEO. As a result, the shares of the British gambling and betting group fell by 13.63 percent. In 2021, Entain had rejected an $11 billion purchase offer from MGM. Since then there has always been speculation about a new takeover attempt. According to MGM boss William Hornbuckle, the company is no longer interested and will go its own way.
pepsico: The US beverage giant Pepsico did better than expected in the fourth quarter of 2022 thanks to price increases. Group sales rose by more than a tenth to almost 28 billion dollars. However, as Pepsico announced in Purchase (New York State) on Thursday, operating profit fell by around two-thirds to $815 million. The reasons for this were a write-down on the SodaStream brand and increased sales costs. The bottom line is that Pepsico made $518 million, up from about $1.3 billion a year earlier. The stock is up 0.95 percent
Ralph Lauren: Ralph Lauren titles gained 0.46 percent after better-than-expected sales figures.
Tesla: The exclusion of the autopilot as the cause of a fatal accident boosted the shares of the electric car maker by almost three percent. An evaluation of the data revealed that “the autopilot mode was never used while the car was in the driver’s possession,” according to the NTSB. Two people died in the accident in April 2021.
More: That’s what fund managers expect in this stock market year