"Tech Giants' Earnings and Economic Indicators Headline Crucial Week for Markets: NYSE Update"

2023-04-24 22:00:01

The New York Stock Exchange closed Monday’s session divided, with the Nasdaq showing weakness at the start of a crucial week that will see the results of several large caps in the technology sector.

The Dow Jones index rose 0.20% to 33,875.40 points and the S&P 500 0.09% to 4,137.04 points, while the tech-heavy Nasdaq fell 0.29% to 12,037, 20 stitches.

“It was a mixed session, mainly due to the anticipation of a very eventful week in terms of company results”, summed up Peter Cardillo for AFP, of Spartan Capital Securities.

“And everyone’s eyes are on the technology outcomes to come,” he added.

The first quarter accounts of Alphabet (+0.82% at the close on Tuesday), Microsoft (-1.40%), Amazon (-0.70%), Meta (- 0.05%) and Intel (-2.11%).

The week started with Coca-Cola’s quarterly accounts showing growth in volume sales despite its price hikes, which it expects to continue in 2023.

The manufacturer of Sprite and Fanta posted a 5% increase in earnings per share excluding exceptional items, a figure above expectations.

The action of the Atlanta group up in the first part of the session, however, ended slightly down by 0.16%.

The results of its competitor PepsiCo are expected on Tuesday as well as those of General Electric, Raytheon, General Motors, UPS and McDonald’s.

“It will be a decisive week in terms of corporate results. Any disappointment could divert the wind from the sails of the stock market”, further warned Peter Cardillo.

Important macro-economic news is also on the menu for the week.

Among a myriad of indicators, the most watched will be the first estimate of Gross Domestic Product (GDP) on Thursday, where growth in the world’s largest economy is expected to slow in the first quarter.

In addition, in Europe, we are also awaiting the first growth estimates for the first three months of the year for Germany and France, scheduled for Friday.

Friday will also be published PCE inflation in the United States for March, the favorite measure of the American central bank (Fed) to gauge the rise in prices.

Investors’ attention to the indicators will be all the more intense as the Fed prepares for a monetary meeting the following week.

Markets are increasingly confident (90%, according to futures products observed by CME) of another 25 basis point rate hike.

But, at the same time, “there is also concern about the fallout from recent banking difficulties that could slow the economy,” recalled Art Hogan of B. Riley Wealth Management.

On the bond market, yields on 10-year Treasury bills fell to 3.49% against 3.57% at the previous closing while those on two years relaxed to 4.11% instead of 4.18%. .