Wall Street plunges to openness, techs and mass retailers weigh

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Wall Street plunges to openness, techs and mass retailers weigh
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GETTY IMAGES NORTH AMERICA / AFP
/ SPENCER PLATT

Wall Street opened sharply lower on Tuesday as several retail groups fell after their quarterly results and the technology sector continued to inspire aversion to investors.

Around 1500 GMT, the Wall Street index, the Dow Jones Industrial Average, dropped 2.03% to 24,510.70 points after losing a few minutes earlier to 2.10%.

The Nasdaq index, with strong technological coloration, dropped 2.37% to 6,862.21 points.

The broad S & P 500 index lost 1.86% to 2,640.64 points.

The plunge of tech values ​​under the weight of the falls of Apple and Nvidia had already earned Wall Street a very hectic session Monday, losing the Dow Jones 1.56% and Nasdaq 3.03%.

Symbol of the fall of these tech giants, the iPhone maker has plunged more than 20% since its historic highs of October, cornered by a succession of ratings of analysts who review downward their forecasts for sales of the brand's flagship phone or its stock price in the weeks or months ahead.

The latest, that of Goldman Sachs on Tuesday that lowered its outlook on the stock price, three weeks after the company has unveiled in its quarterly results prospects disappointing iPhone sales.

In addition to the apple brand, the other technological stars of "FAANG” have plummeted since their recent highs, Facebook tumbled before the opening Tuesday 39.5%, Amazon 26%, Netflix 35.5%, and Alphabet (parent company of Google) 20%.

"There is a real review of tech companies as a whole," said analysts Charles Schwab.

"They are now victims of massive sales after being massively bought," said Patrick O'Hare of Briefing.

"Concerns about a general slowdown, a high valuation, and a harsher regulatory environment weigh in," he added.

In this tense context, "Apple's suppliers are suffering” said Chris Low of FTN Financial.

Among them, the semiconductor sector, which has been one of the driving forces behind the surging indices in recent months, was strongly affected.

The strongest fall was that of Nvidia, which dropped by 3.91% at the opening on Tuesday. Since the publication of disappointing quarterly results on Friday, the group has lost nearly 30%.

The retail groups also fell heavily after the publication of their quarterly results: Target plunged 10.28%, Kohl's 10.73%, and Lowe's 2.92%.

"Reasons are diverse but include fear of margin pressures, high inventories, lower than expected same-store sales” said Patrick O'Hare of Briefing.

In the bond market, the 10-year debt rate fell to 3.044% against 3.063% Monday at the close, and the 30-year to 3.288%, against 3.321% the day before.

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  • 20/11/2018 16:16:03 –
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