09.02.2023 05:36 AM
US stock markets decline in early trading

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As of 20:05 GMT+3, the Dow Jones Industrial Average was down 58.20 points, or 0.17%, to 34,098.49 points, the S&P 500 lost 21.61 points, or 0.52%, to 4142. 39 points, and the Nasdaq Composite - 109.91 points, or 0.91%, to 12,003.88 points.

eBay shares are down 0.6% in trading. The day before, the world's largest online auction announced its intention to reduce the global staff by about 4%, laying off about 500 people.

Capri Holdings Ltd., which owns fashion brands Michael Kors, Jimmy Choo and Versace, plunged 24% amid weak quarterly earnings and company guidance.

US restaurant chain Chipotle Mexican Grill was down 4%. The company increased net profit in the 4th quarter of 2022 by 1.7 times, however, adjusted profit and revenue fell short of analysts' expectations.

Uber Technologies rose 2.5%. The taxi and food delivery service company saw a nearly 1.5x increase in revenue in the 4th quarter of 2022 thanks to an increase in orders. Uber's first-quarter guidance beat market expectations.

The price of Coty Inc. papers. fell by 3.5%. The cosmetics and perfumery manufacturer's net profit in the 2nd financial quarter grew by 22%, the company's revenue decreased by 3.5%, but exceeded market expectations. In addition, Coty has improved its FY2023 adjusted earnings guidance.

CVS Health Corp. share price increased by 4%. The pharmacy chain operator's fourth-quarter revenue rose 9.5% to $83.85 billion, well above the market's consensus forecast of $76.32 billion.

CVS also announced the purchase of Oak Street Health Inc., which operates a network of primary care centers for Medicare users, for $10.6 billion. Oak Street rose 4.1%.

Fed chief Jerome Powell, who attended an Economic Club of Washington event the day before, said he expects a significant slowdown in US inflation in 2023. At the same time, he noted that the continued stability of the US labor market may serve as a basis for further rate hikes by the Fed.

At the same time, Powell said that it is necessary to continue raising rates, and it will also be necessary to maintain a restrictive policy for some time.

Saxo Bank A/S Head of Equity Strategies Peter Garnry noted that due to the slowdown in commodity inflation, the growth in consumer prices in the service sector is more stable. This factor may contribute to a longer-than-expected inflation.

Wednesday is scheduled to feature New York Federal Reserve Bank (FRB) Governor John Williams, Fed Board members Lisa Cook and Christopher Waller, Fed Vice Chair Michael Barr, and Atlanta and Minneapolis Fed leaders Rafael Bostic and Neil Kashkari.

Traders are also evaluating the statement of US President Joe Biden, who proposed to increase by 4 times - up to 4% tax on the repurchase of shares by companies. This, according to Biden, should push the business to increase investment in further development.

Thomas Frank,
Analytical expert of InstaForex
© 2007-2023
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