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Wall Street closes in third consecutive quarterly loss By Reuters

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© Reuters. A trader works on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, US, September 13, 2022. REUTERS/Andrew Kelly

Written by Stephen Kolb

NEW YORK (Reuters) – Wall Street wobbled as the biggest fall in September since the global financial crisis ended on Friday, closing records in a turbulent quarter filled with historically high inflation, rising interest rates and recession fears.

The three major indicators were in the red, after being volatile for most of the session.

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The S&P and Dow were on track for their third consecutive weekly decline, and all three indices set a path for their second consecutive monthly losses.

In the first nine months of 2022, Wall Street suffered three consecutive quarterly declines, the longest losing streak for the S&P and Nasdaq since the Great Recession and the Dow’s longest in seven years.

“It’s been a very painful quarter for the stock market,” said Tim Greske, senior portfolio analyst, Angels & Snyder in New York. “There is uncertainty about the Federal Reserve and its ability to keep the economy afloat while it attacks inflation and lowers it to a sustainable level.”

The Federal Reserve shook the markets by engaging in a series of relentless interest rate increases for decades in order to rein in stubbornly high inflation, which has many market participants looking to key economic data for signs of a looming recession. horizon.

The Commerce Department’s personal consumption expenditures (PCE) report did little to assuage those concerns, showing that while consumers continue to spend, the prices they pay have accelerated, drifting further beyond the Fed’s inflation target and all but the guarantee of tight monetary policy by the central bank. It will last longer than investors had hoped.

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Recession fears have also been echoed by dire warnings of nike Inc (NYSE:) and cruise operator Carnival (NYSE:): Corp, both reporting inflation-related margin pressures.

Shares of companies fell by 11.9% and 21.3%, respectively.

It fell 213.52 points, or 0.73%, to 29,012.09 points. The S&P 500 lost 14.56 points, or 0.40%, to 3,625.91. It fell 19.19 points, or 0.18%, to 10,718.32 points.

Among the 11 major sectors of the S&P 500 and consumer staples, both of which are proxies of the bond market, suffered the largest percentage of losses.

Apple Inc (NASDAQ :), Nike Inc, Microsoft Corporation (NASDAQ 🙂 It was among the heaviest clouds.

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Corporate earnings reports for the quarter that ends with Friday’s closing bell will start to drop in a few weeks, and analysts’ expectations are headed lower.

Analysts now see annual S&P 500 earnings growth of 4.5%, overall, down from an estimate of 11.1% at the start of the quarter.

Quarterly reallocations and so-called “window adjustments” are likely to contribute to session volatility.

Advance issues outnumbered declining issues on the New York Stock Exchange by 1.39 to 1; On the Nasdaq, the 1.64 to 1 ratio favored the highs.

S&P 500 not hit 52-week highs and 55 new lows; The Nasdaq Composite recorded 15 new highs and 239 new lows.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.