The Dow Jones closed down 45.74 points amid concerns about profits. “Cisco Walmart”

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The Dow Jones index on the New York Stock Exchange closed lower on Thursday (November 16) after US technology major Cisco Systems and Walmart Inc. cut their 2024 earnings forecasts. It is the largest retail company in the world and revealed profit expectations that were lower than analysts’ estimates.

The Dow Jones Industrial Average closed at 34,945.47 points, down 45.74 points, or -0.13%, the S&P 500 index closed at 4,508.24 points, up 5.36 points, or +0.12%, and the Nasdaq index closed at 14,113.67 points, up 9.84 points, or +0.07%. %.

Shares of Cisco Systems fell 9.8% after the company reported earnings per share for the August-October period. Which in the first quarter of the company’s fiscal year was at $1.11, higher than analysts’ expectations of $1.03, but the company lowered its earnings per share expectations for the fiscal year 2024 to the level of $3.87-3.93 from the original expectations level of $4.01-$4.08, as demand for networking equipment tends to To slow down

Walmart shares fell 8.1% after the company reported third-quarter 2023 earnings per share of $1.53, above analysts’ expectations of $1.52, but the company expects fiscal 2023 earnings per share to be lower, at $6.40, less than Analysts’ expectations: $6.48.

Paul Nolte, an analyst at Murphy & Sylvest, said Cisco Systems and Walmart are the “backbone” of the technology industry. and the retail industry respectively, and the release of weak forecasts from both companies raised market concerns about consumer spending capacity and the future outlook for the technology industry.

Concerns about Walmart’s earnings outlook sent shares of other retailers lower. These included Dollar Tree shares down 4.2%, Target shares down 0.4%, and Nordstrom shares down 4.7%.

However, big technology stocks continued to close in positive territory. These companies include Microsoft, Apple, Alphabet, Meta Platforms and Invidia, supported by expectations that the Federal Reserve will end its interest rate hike cycle. After the slowdown in inflation numbers in the United States

The number of first-time applicants for unemployment benefits rose by 13,000 to 231,000 last week, the US said. This was the highest level in three months and exceeded analysts’ expectations of 220,000. The data was an additional factor supporting expectations that the Federal Reserve will stop raising interest rates.

CME Group’s latest FedWatch tool indicates that investors expect the Fed to hold interest rates at 5.25-5.50% at its December 2023, January 2024 and March 2024 meetings before cutting them. . 2567

Source: InfoQuest News Agency