2023-12-21 16:01:03
Wall Street Halts 9-Day Winning Streak with Sharp Drops in Leading Indexes
After nine consecutive days of gains in the Dow Jones index, Wall Street came to a halt last night with sharp price drops in the leading indexes, led by the Nasdaq which lost 1.5%. However, expectations for adequate increases were seen in the futures market, with an opening of about 1% in the Nasdaq index 100.
The market continues to convey optimism regarding the drop in interest rates, as yields on government bonds fell slightly to a level of 3.84% today.
In Europe, there were slight declines as the DAX and the KAC lost about 0.3%, and the British FTSE fell about 0.5%. In Asia, a negative trend was seen, with Australia falling 0.5%, Hong Kong closing unchanged, the Korean Kospi losing 0.5%, and Japan falling about 1.6%.
Oil also experienced a drop of 1.8% to a price of $72.9 per WTI barrel, while gold rose to the level of $2,043 dollars per ounce.
In early trading, Micron (MU) jumped over 7% after posting good reports that surpassed profit and revenue for the first physical quarter, and providing a strong forecast for the second quarter of the year.
Boeing (BA) reported that China’s aviation regulator has granted approval to resume deliveries of its 737 Max aircraft. Reuters also reported that the company will deliver the 737 Dreamliners to a privately owned Chinese company within a few days.
Salesforce (CRM) received a downgrade of recommendation from “Wells Fargo” yesterday, but today saw an increase in recommendation from “Morgan Stanley” to overweight from market weight.
CarMax (KMX) added about 9% in early trading after the company reported earnings of 52 cents per share versus expectations of 42 cents, and announced that it is returning to purchasing shares.
As the market enters the last line of the year, shortened trading for Christmas on Monday is expected, followed by sparse trading days leading up to the Rosh Hashanah holiday. Investors will be closely watching for further developments in the market as the year comes to a close.
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