U.S. Major Averages Set to Fall Second Week In a Row

Barry Adams
11 Aug, 2023
New York City

Market averages on Wall Street traded down after the release of the wholesale inflation report. 

The S&P 500 and the Nasdaq Composite index fell more than 0.5% and are set to close down for the second week in a row on the persistent worries of rate hikes and economic uncertainties. 

Wholesale inflation measured by the Producer Price Index accelerated to 0.8% on an annual basis in July from 0.2% in June, the U.S. Bureau of Labor Statistics reported Friday. 

On a monthly basis, wholesale inflation rose 0.3% from the previous when the inflation measure was downwardly revised to flat. 

In trading, semiconductor stocks face headwinds for the second week in a row after AI-driven enthusiasm began to dissipate. 

Energy stocks gained after crude oil prices traded at 9-month high and natural prices retained upward bias on the potential strike at LNG terminals in Australia. 

 

U.S. Indexes & Yields 

The S&P 500 index traded down 0.3% to 4,455.18 and the Nasdaq Composite fell 0.9% to 13,613.76. 

The yield on 2-year Treasury notes increased to 4.89%, 10-year Treasury notes inched higher to 4.15% and 30-year Treasury bonds edged down to 4.27%. 

Crude oil increased $0.47 to $83.26 a barrel and natural gas prices decreased 6 cents to $2.70 a thermal unit. 

 

U.S. Stock Movers 

Savers Value Village Inc jumped 9.5% to $25.73 after the online platform for second hand merchandise reported better-than-sales in the second quarter. 

UBS Group AG jumped 4.5% to $23.24 after the Swiss bank voluntarily terminated its loss protection agreement signed at the time of Credit Suisse purchase with the Swiss National Bank and Swiss government saying the bank does not need it. 

Separately, the bank said Credit Suisse fully repaid an emergency liquidity loan of 50 billion Swiss francs to  the Swiss National Bank. 

MercadoLibre Inc decreased 2.1% to $1,358.57 after the Latin America focused e-commerce platform appointed a new chief financial officer Thursday. 

Illumina, Inc decreased 4% to $177.53 after the company said in a regulatory filing that the U.S. Securities and Exchange Commission is investigating the company over its acquisition of cancer test developer Grail. 

Maxeon Solar Technologies Ltd dropped 32.5% to $15.05 after the company missed its own sales outlook for the second quarter and forecasted even lower sales in the third quarter. 

The clean energy company reported second quarter revenue of $348 million compared to $228 million a year ago and forecasted revenue between $280 million and $320 million in the third quarter. 

Maxeon guided full-year 2023 sales between $1.25 billion and $1.35 billion and adjusted operating earnings between $80 million and $100 million and capital expenditure between $150 million and $170 million. 

Net loss in the quarter declined to $1.5 million from $87.5 million and diluted loss per share shrank to 3 cents from $2.15 a year ago. 

Solar shipments increased to 807 MW from 521 MW a year ago and the Singapore headquartered company guided between 700 MW and 740 MW in the third quarter.