Wall Street is trading at a loss, with Tesla and Alphabet putting pressure on tech stocks.
Tesla leads the losses with a drop of more than 11% after reporting weak quarterly figures yesterday. Alphabet falls despite reporting results above expectations, but with a decline in YouTube advertising revenue.
The three main Wall Street indices are operating with declines on Wednesday morning. The averages are retreating, led by the Nasdaq, as a rebound observed in tech stocks yesterday fades with the disappointment of two quarterly results.
The main Dow Jones index, composed of 30 major companies, loses 0.85% at 40,015.13 points. The S&P 500 of 500 stocks loses 1.62% at 5,465.85 units. The tech-heavy Nasdaq Composite drops 2.57% to a level of 17,535.40 points.
Tesla shares lead the losses of the day after reporting weak quarterly figures with a drop in sales yesterday. Elon Musk’s electric vehicle maker drags down the tech sector, losing more than 11 percent.
Meanwhile, shares of Alphabet, Google’s parent company, experience a 4.50% drop also after presenting its results. Although the consolidated numbers were better than expected, the decline in YouTube advertising revenue was not convincing.
“I can’t help but think that if the tech sector sneezes, the whole market might catch a cold,” said David Morrison, market analyst at TradeNation. The Russell 2000 index of small-cap companies shows a decline of 0.3 percent.
By sectors, communication services (which includes Alphabet among its stocks) and consumer discretionary (which includes Tesla) fell more than 2 percent. In the Dow Jones, Visa shares (-4.15%), which also reported its results, led the declines.
Visa said its third-quarter earnings met expectations, while revenue fell short. Payment volume increased by 7% in the period, and processed transactions increased by 10 percent.
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