Dow wipes out gains for the year with 600-point plunge
October 25, 2018
It is a severe correction but not heading for a bear market: Peter Cardillo, Spartan Capital
October 25, 2018


Wall Street has heavily dropped on Wednesday at the closing, accelerating its losses in the final minutes of a session marked by a movement of risk aversion following the publication of corporate results.

According to the final results at the close, the index feature of the place in new york, the Dow Jones Industrial Average, has lost 2,41%, 24.583,42 points.

The Nasdaq, in high coloring technology, has released a 4.43% to 7.108,40 points, its worst session since 2011.

The expanded index S&P 500 has dropped 3,09%, to 2.656,10 points.

The Dow Jones as the S&P 500 are ironed in their level of the beginning of the year.

Has the picture of Tuesday and the plunge in the securities of Caterpillat and 3M, the session was marked by a fall in quasi-generalized of the leading companies have unveiled their quarterly accounts.

Texas Instruments (-8,22%), AT&T (-8,06%), UPS (-5,52%), Northrop Grumman (Of-6.00%), General Dynamics (-7,73%), Check Point Software (-4,26%) and Restaurant Brands International, owner notably of the mark Burger King (-1,37%), fell.

Their results “have not been really disappointing, but the markets set the bar very high when it comes to expectations in the future,” said Nate Thooft, Manulife AM.

However, the expectations of businesses have recently been “often adversely affected by the increase in tariffs, which crops out on the margins”, he added.

A prominent member of Wall Street, Boeing (+1,31%) has managed to stay afloat after raising its annual forecasts, and the announcement of the goal, for the first time in its history, the symbolic threshold of 100 billion dollars turnover in a year.

But while the manufacturer has supported the rise in the Dow Jones in the amount of up to 4.16% in the session, it was not able to prevent the crash at closing.

In this motion of no confidence, which is then generalized to the set of values, technology companies have especially suffered, Facebook dipping, in particular of 5,414%, Netflix of 9,40% and Apple of 3.43%.

“The technological values have rocketed recently, it is logical that she be the first to be affected when sharp declines,” noted Peter Cardillo, of Spartan Capital.

As before, the search for safe investments by investors in a context of uncertainty amplified the decline in interest rates on u.s. Treasury bonds is: at around 20: 30 GMT, the yield on the debt in 10 years the United States evolved 3,107%, compared to 3,168 per cent on Tuesday at the closing, and the one on the debt to 30 years 3,338%, compared to 3,368% the day before.

Source: https://kozpost.com/blog/wall-street-affected-by-the-results-of-companies-tumbles-2/13190/