The major US indices fell sharply with both the S&P index and the NASDAQ index erasing the gains from yesterday.
The Dow industrial average fell sharply but declines were less vs. the gains yesterday.
- The S&P 500 closed at the lowest level since November 2020.
- Two Dow stocks were higher: Travelers and Visa
- Apple shares of fell around $-7.29 or -4.84% and is closing below its 100 week moving average at $146.01. The closing level is at $142.52. Bank of America downgraded the stock to neutral from buy
- Major averages are negative on the week heading into the final day tomorrow
- NASDAQ lower for the 1st time in 3 trading days
The final numbers are showing:
- Dow industrial average fell -456.17 points at -1.54% at 29227.58. The index fell rose 1.88% yesterday
- S&P index fell -78.33 points or -2.11% at 3640.69. Yesterday the index rose 1.9%
- NASDAQ
NASDAQ
The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since assumed the majority of major trades that had been executed by the over-the-counter (OTC) system of trading.What Makes Up the NASDAQ?In particular, the exchange also features the NASDAQ Composite, which includes almost all stocks listed on the NASDAQ stock market. Along with the Dow Jones Industrial Average (DIJA) and S&P 500 Index, this is one of the three most-followed stock market indices in the United States.Overall, the NASDAQ stock market has three different market tiers. This includes the Capital Market, or an equity market for companies that have relatively small levels of market capitalization. The listing requirements for small cap companies are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization.Additionally, the Global Market is made up of stocks that represent the Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet the exchange’s financial and liquidity requirements, and corporate governance standards.Finally, the Global Select Market is a market capitalization-weighted index made up of 1,200 US-based and international stocks that represent the Global Select Market Composite.
The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has since assumed the majority of major trades that had been executed by the over-the-counter (OTC) system of trading.What Makes Up the NASDAQ?In particular, the exchange also features the NASDAQ Composite, which includes almost all stocks listed on the NASDAQ stock market. Along with the Dow Jones Industrial Average (DIJA) and S&P 500 Index, this is one of the three most-followed stock market indices in the United States.Overall, the NASDAQ stock market has three different market tiers. This includes the Capital Market, or an equity market for companies that have relatively small levels of market capitalization. The listing requirements for small cap companies are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization.Additionally, the Global Market is made up of stocks that represent the Nasdaq Global Market. The Global Market consists of 1,450 stocks that meet the exchange’s financial and liquidity requirements, and corporate governance standards.Finally, the Global Select Market is a market capitalization-weighted index made up of 1,200 US-based and international stocks that represent the Global Select Market Composite.
Read this Term index fell -314.12 points or -2.84% at 10737.52. Yesterday the index rose 2.05%
- Russell 2000 fell -40.31 points or -2.35% at 1674.93. The index rose by 3.17% yesterday
Micron (and Nike) is reporting quarterly results after the bell. The chip sector has been smashed as concerns about growth weighs on all the chip makers including some of the darlings like Nvidia (-58.28%) and AMD (-50.23%). Micron shares are down -46.21%
Earnings
Earnings
A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation’s operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share prices, while unexpectedly bad earnings can risk declines in share prices. Using Earnings to Better Inform Investment DecisionsMany analysts also use other measures such as earnings per share (EPS) as a way to compare the earnings of multiple companies.EPS is calculated by the remaining earnings leftover for shareholders, divided by the number of shares outstanding. This is a more fine-tuned measure for investors and analysts given each company has a different number of shares owned by the public.Only comparing companies’ existing earnings does not accurately indicate how much money each company has for each of its shares over a specific period.As a result, EPS is routinely used to make better-informed comparisons and forecasts.In the US, all companies are obligated to report quarterly earnings to the public, which informs on the state of any publicly traded company. These events are very monitored and important, especially for large corporations.In addition, several companies are used as barometers for the state of the overall market or US economy, lending further weight to these metrics.Ultimately, earnings are an integral element of the US stock market and ensure companies disclose their financials in ways that do not leave investors or the public in the dark.
A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation’s operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share prices, while unexpectedly bad earnings can risk declines in share prices. Using Earnings to Better Inform Investment DecisionsMany analysts also use other measures such as earnings per share (EPS) as a way to compare the earnings of multiple companies.EPS is calculated by the remaining earnings leftover for shareholders, divided by the number of shares outstanding. This is a more fine-tuned measure for investors and analysts given each company has a different number of shares owned by the public.Only comparing companies’ existing earnings does not accurately indicate how much money each company has for each of its shares over a specific period.As a result, EPS is routinely used to make better-informed comparisons and forecasts.In the US, all companies are obligated to report quarterly earnings to the public, which informs on the state of any publicly traded company. These events are very monitored and important, especially for large corporations.In addition, several companies are used as barometers for the state of the overall market or US economy, lending further weight to these metrics.Ultimately, earnings are an integral element of the US stock market and ensure companies disclose their financials in ways that do not leave investors or the public in the dark.
Read this Term update:
Micron:
- Earnings-per-share $1.45 vs. $1.30 expected.
- Revenues of $6.64 billion
- revenue guidance $4.0B to $4.5 billion vs. expected $6.02 billion
- EPS guidance -$0.06 to $0.14 (expected +$0.72
- Shares are lower by -1.5% in after-hours trading as forward guidance weighs on the stock
Nike:
- revenues $12.69 billion vs. $12.27 billion
- earnings-per-share $0.93 vs. $0.92 expected
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