Stocks: American stock indexes ended trading on Tuesday with the sharpest decline since mid-December on weak quarterly reports of large retailers.
Investor sentiment was also hit by a rise in government bond yields to near-year highs amid expectations that strong economic data will prompt the Federal Reserve to maintain higher interest rates for longer.
Meanwhile, on Tuesday, it became known that sales in the secondary housing market in the US in January decreased by 0.7% compared to the previous month and amounted to 4 million homes in annual terms.
The decline was recorded for the twelfth month in a row, which has not happened since the start of settlements in 1999. Moreover, it is now at its lowest level since October 2010.
« While the stock market has shown an impressive recovery this year, it is still trying to adjust to a new reality in which the Fed is unlikely to take a break and will remain focused on fighting inflation, which means investors need to brace for a long period of higher rates. « said BMO Family Office Investment Director Carol Schleif.
Home Depot Inc stock quotes fell 7.1% in the session, leading to a decline in the Dow Jones index. The largest US chain of stores for home goods in the fourth financial quarter, which ended on January 29, increased revenue weaker than expected and gave disappointing investors a full-year forecast.
Papers Walmart Inc. rose by 0.6%, and only one of the 30 representatives of the Dow ended trading in positive territory. The largest US retailer increased its net profit and revenue in the fourth financial quarter (November-January), although it gave weak forecasts for the current quarter and year.
Shares in the country’s leading auto retailer AutoNation fell 8.9% after analysts at JP Morgan downgraded their recommendation to below market from neutral.
Constellation Energy Corp. stock price dipped 4.9% on BofA Securities’ announcement that they cut their recommendation to « neutral » from « buy. »
Irish Medtronic Plc, one of the world’s largest medical equipment manufacturers, received in the third financial quarter adjusted profit and revenue better than experts’ expectations. On this news, the company’s shares, traded on the New York Stock Exchange, rose 0.8%.
Shares of General Mills Inc. added 4.4% in price. One of the largest US food producers now expects FY 2023 adjusted earnings to rise by 7% to 8% compared to December’s forecast of 4% to 6%. The estimate of organic revenue growth improved to around 10% from 8-9%.
Dow Jones Industrial Average decreased by 2.06% and amounted to 33129.59 points. The Standard & Poor’s 500 fell 2% to 3997.34 points. The Nasdaq Composite fell 2.5% to 11,492.3.