Wall Street markets ended Wednesday’s trading session with declines, under pressure by the downtrend in the technology and banking sector, which has paused the rally from the beginning of the month.
The blue-chip index Dow Jones Industrial Average wiped out 0.17%, reaching a level of 26,004.83 points. In turn, the S&P 500 declined by 0.2% to 2,879.84 points, while the technology Nasdaq Composite dropped by 0.4%, reaching 7,792.72 points.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 0.50% to 15.91.
Yesterday, the US markets failed to remain into the green and ended the session with slight declines, ending their six-day winning streak. Nevertheless, the leading Wall Street indexes registered a growth of over 4% since the beginning of the month, recovering from the more significant sales in May.
On Wednesday, the markets remained focused on world trade as US President Donald Trump said that the US has no interest in a trade deal with Beijing unless the country agreed to at least five of the top US claims.
Wall Street remains focused on economic data as investors are increasingly betting on cuts on interest rates by the Federal Reserve. Data early Wednesday showed that US price inflation remains tame, according to the Labor Department’s consumer-price index, which indicated that prices rising 0.1% in April, in line with the consensus forecast, according to a MarketWatch poll of economists. The increase in the cost of living over the past 12 months also slowed to 1.8% from 2%. When eliminating volatile food and energy prices, inflation fell from 2.1% annually to 2%.
Though the measure isn’t as closely followed by the Federal Reserve as the personal-consumption expenditures index, this latest evidence that price growth is slowing could support the investors’ belief that the Federal Reserve will cut interest rates sooner than later.
On bond markets, the yields on 10-year and 30-year US treasuries reached 2.12% and 2.616%.
Corporate stocks performance
The technology sector was suppressed by chip makers. The stocks of VanEck Vectors Semiconductor ETF (SMH) fell by nearly 2.2%. In turn, Applied Materials, KLA-Tencor and Teradyne lost 5.14%, 3.62% and 4%, respectively, after an analysis by Evercore ISI indicated that there would be a recovery of the sector, but probably will be delayed for the second half of 2020.
Facebook’s stock also fell by 1.7% after the Wall Street Journal reported that the company had found emails linking CEO Mark Zuckerberg to the controversial practices of the company for storing personal data.
Shares of electric car maker Tesla Inc fell by3.6%, shedding an earlier gain scored after Chief Executive Elon Musk late Tuesday took the stage at the company’s shareholder meeting and denied the company was facing demand and production problems.
Neptune Wellness Solutions Inc announced a three-year sourcing agreement with cannabis company Green Organic Dutchman Holdings Ltd. Neptune shares rose by 5.4% Wednesday.
Pharmaceutical and consumer goods companies performed particularly strong with Johnson & Johnson and Pfizer adding 1.36% and 0.96%, respectively.
Salesforce.com Inc said Wednesday that a recently announced acquisition of Tableau Software Inc would reduce 2020 earnings less than initially assumed. Salesforce shares rose 0.8% Wednesday, while Tableau’s stock gained 0.9%.
The shares in Signet Jewelers Ltd fell to 5-year lows, down by 5.65%, while Adynxx Inc wiped out 39.23%.
The top performers on the S&P 500 were Mattel Inc (+5.27%), Alexion Pharmaceuticals Inc (+3.00%) and Eli Lilly and Company (+2.70%), while on the flipside were Chesapeake Energy Corporation (-7.37%), Signet Jewelers Ltd (-5.65%) and Western Digital Corporation (-5.65%).
Corporate earnings reports
The provider of integrated solutions, technology-enabled services and analytics supporting revenue cycle optimization for healthcare enterprises, Streamline Health, announced financial results for the first quarter of fiscal 2019, which ended April 30, 2019. Revenues for the three-month period ended April 30, 2019, were approximately 5.4 million USD, down slightly from revenues for the quarter ended January 31, 2019, and down approximately 14% from the comparable quarter of fiscal 2018. Recurring revenue comprised 77% of total revenue in the quarter ended April 30, 2019. The net Income for the first quarter was approximately 0.3 million USD as compared to a net loss of 0.6 million USD in the comparable period a year ago. Adjusted EBITDA for the first quarter of 2019 was approximately 1.1 million USD, up substantially from 0.6 million USD in the first quarter of the last fiscal year.