A strong correction in the profits of companies that were heavily exposed to the Chinese market, like Boeing and Caterpillar was inevitable, so when this Wednesday they announced a sharp drop in earnings, their stock prices eventually appreciated as investors had already incorporated the bad news. However, the Texas Instruments outlook deterioration was something the market was not expecting, as recently the sector has had some positive indications of a return of buyer interest, particularly in the memory segment.
By pointing out that customers are now much more cautious when ordering, Texas Instruments, which is a major name in the semiconductor sector, generated a sense of caution among investors, who not only sold the company’s securities but also the whole group, causing the Philadelphia SE Semiconductor Index to lose -1.9%. Moreover, this day was one of contradictory indicators, positive surprises in the results, but also a significant number of companies that disappointed, which at the end of the day left no room for the indices to have more than minimum gains, therefore, again the S&P500 closed on the brink of new highs.
Photo by Daniel Eledut.
We’ll see if Amazon will break the bank when it releases the results after market close on Thursday, but we should hardly have the American indices spreading joy among the Bulls, because the time for euphoria is over. Today, caution is the dominant word in the minds of investors.
