Dow slips as earnings do not live up to expectations by Investing.com

By Yasin Ebrahim

Investing.com – The Dow fell on Wednesday as the sea of ​​red swept through Wall Street with mostly weaker quarterly earnings, while an unchanged Fed decision did little to change the market direction.

It fell 1.30%, or 403 points. It fell by 1.59% while the 1.13% fell.

The Federal Open Market Committee maintained its benchmark rate of 0% to 0.25% and maintained its monthly rate of bond purchases. The central bank reiterated that the path of the economy “will depend significantly on the course of the virus, including progress with vaccinations”, although it acknowledges that “the ongoing public health crisis continues to weigh on economic activity.”

Major Dow component Boeing (NYSE 🙂 fell 4% to a larger-than-expected quarterly loss of $ 15.25 per share. The loss was mainly driven by a $ 8.3 billion hit related to the ground of the 737 Max and a delay in the 777-X program.

Starbucks (NASDAQ 🙂 fell more than 6% as the coffee chain reported that U.S. sales in the same store fell 5% in the first quarter of the year due to the impact of further restrictions to limit the spread of the virus .

Chipmakers were also under pressure, by more than 2% lower, due to the weakness in Advanced Micro Devices (NASDAQ :), despite better-than-expected earnings of 52 cents per share.

However, Microsoft (NASDAQ 🙂 helped the trend and rose more than 1% after reporting a share of $ 2.04 per share that significantly beat analysts’ analysis, thanks to growth in its cloud business Azure.

The lot of earnings comes ahead of the quarterly reports from Apple (NASDAQ :), Facebook (NASDAQ 🙂 and Tesla (NASDAQ 🙂 due to the markets closing on Wednesday.

Tesla’s report earmarked analysts’ guidance on deliveries as the key to further supporting the growth story of the electric vehicle.

“A positive guideline for deliveries in 2021, combined with comments that will bolster the growth story, could be a positive catalyst for the stock, despite its robust valuation,” Credit Suisse (SIX 🙂 said in a note.

Energy was the only sector in the green as oil prices turned positive as the data shows that weekly stocks fell unexpectedly.

Investors’ attention has also been captivated by a constant short press on Wall Street, led by a group of mainly retail traders, merging on Reddit forums, apparently bidding on short-term stocks that exceed the float.

Melvin Capital and Citron Research, which were both sellers of GameStop (NYSE :), were forced to close their positions on the shares of the video game trader with huge losses, after a rise of more than 700% in the stock.

AMC Entertainment (NYSE 🙂 short sellers were also caught when the stock rose more than 200%