The stock market losses worsen, the Dow Jones loses 900 points | Investor’s Business Daily
The losses of the main stock market indices increased Tuesday at noon and were at the lowest of the day. The stock market has punished investors on inflation results of the higher IPC (consumer price index) than expected for the month of August.
The Nasdaq fell 4%, leading the losses. The S&P 500 lost 3.2 %. The Dow Jones Industrial Average lost 2.8 %. Small capitalizations also fell, the Russell 2000 index losing 3.1 %. The main clues are located below their mobile averages over 50 days.
Raising volume up, downward prices
The volume of the NYSE increased by 5.5% and the volume of the NASDAQ increased by 16%, compared to the same time on Monday.
The Nasdaq 100 followed invesco qqq trust (QQQ) lost 4.2 %.
Brut oil fell 1.3 %, exchanging at $ 86.66 a barrel. Natural gas increased by 0.6 %. The SPDR Select Energy ETF (XLE) lost 1.7 %.
Bitcoin term contracts sold 7.5% to $ 20,795. The yield of the US Treasury Bon at 10 years old was maintained at 3.44 %.
The German stock market index Dax lost 1.6 %, FTSE 100 from London dropped by 1.2 % and the CAC 40 in Paris lost 1.4 % in afternoon exchanges.
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IPC’s basic figures vibrate investors
Basic consumer prices from one month to the other of August were worse than expected with an increase of 0.1 % while analysts’ consensus was negative of 0.1 %. IPC excluding food and energy increased by 0.6% against 0.3% expected. The annualized basic IPC is calculated at 8.3 %, compared to 8.1 % expected. The annual rate is an improvement compared to figures of 8.5 % in July and 9.1 % of June.
“The rise in food prices is an increasing concern. The food index increased by 11.4 % compared to a year ago, the highest increase from one year to the next since 1979,” said Jeffrey Roach, chief economist at LPL Financial.
The markets provide 82 % that the Fed raises its interest rates of 75 base points at the meeting of this month. Only 18% of market observers expect an increase of 50 base points. Today’s IPC data has strengthened this high conviction from the third consecutive increase in the rates of federal funds of 75 base points, which will be announced at the FOMC meeting next week.
The optimism index of small NFIB companies in August was 91.8 compared to the consensus of 90.5, which shows the optimism of small businesses. Small businesses are essential for the creation of new jobs and can be an advanced indicator of the evolution of the stock market, in particular small capitalization shares.
The energy stock increases during buyout and orientation
Energy (LNG) won 3.1 % after the company announced an increase of $ 4 billion in its long -term share buy -back plan and noted its EBITDA forecasts adjusted for the year 2022.
The agricultural stock leaves the base
Solutions company for plants and seeds Cortéva (VAT) won 1.8 % and came out of a cup base with a handle with a point of purchase of 63.87 on a large volume, on the Marketsmith graphic. The relative line of force has reached a new summit, as indicated by a blue point on the graph.
Corteva has announced an additional share repurchase of $ 2 billion in addition to its current $ 1.5 billion program. The company occupies the second place in the agricultural operations group, which is classified n ° 70 among the 197 IBD industry sectors.
Corteva has a strong composite note of 86, out of 99, but a sub-optimal EPS note of 66. The mutual funds added the stock, with 1,974 owners in June, against 1,859 in March and 1,773 in December.
Drug manufacturer Therapeutic akero (AKRO) has skyrocketed more than 110 % over a high volume after having declared that it has reached the primary and secondary evaluation criteria of its 2B phase hepatic fibrosis processing trials.
Oracle (ORCL) canceled the previous gains and was down 0.8 % after reporting a failure of the BPA and the first quarter sales figures for the 2023 financial year after the market is closed. The company cited a strong dollar as a pressure on profits. CEO Safra Catz has given sales and profits for the tax T2 lower than expectations, again citing the strength of the dollar as a factor.
Oracle finalized the acquisition of Cerne, a hospital software company, in June for 28.3 billion dollars. JP Morgan noted its stock target at 84 against 82.
Platoon (PTON) lost an additional 12% to the news on Monday that co-founders John Foley and Hisao Kushi resigned. Foley resigned from his CEO post in February, but remained executive president of the board of directors. Hisao Kushi was the legal director. The commercial director of Peloton, Kevin Cornils, also leaves. The company announced on August 25 results and sales figures disappointing for the fourth quarter.
Stock market today: IBD 50 stocks in motion
ETF IBD 50 (Ffty), a measurement of growth values, was passed by 1.9 %, better resisted than the main indices.
Manufacturer of rare disease drugs Pharmaceutical catalyst (CPRX) has climbed 10.7 % over a huge volume when entering its entry into the S&P Smallcap 600 index. The company has perfect notes of 99 on composite notes and relative force notes, and an EPS note 98.
Diamondback energy (CROC) lost its earlier earnings and dropped by 0.9 %. Natural gas producer Comstock Resources (CRK) added 0.3 % and is negotiated above its exponential mobile average over 21 days.
Therapeutic Sarepta (Srpt) fell 4.2 % and briefly passed under its 21 -day line.
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