The New York Stock Exchange closed in the red on Thursday, April 23, weighed down by investors’ nervousness over growing uncertainties in the Middle East, while keeping an eye on corporate results.
Wall Street ended on the defensive due to uncertainties surrounding negotiations between Iranians and Americans. Despite a double record for the Nasdaq and the S&P 500, they respectively fell by 0.89% and 0.41%. The Dow Jones lost 0.36%.
According to Art Hogan from B. Riley Wealth Management, there is a tug-of-war between strong corporate results and the lack of improvement in news from the Strait of Hormuz. The rise in energy prices seems to have shifted attention away from corporate results.
Oil prices continued to rise, with Brent exceeding $100 per barrel, due to disappointment over the failure to reopen the Strait of Hormuz, coupled with tension awaiting the next negotiations between Washington and Tehran.
President Trump stated that he has “all the time in the world” regarding tensions in the Middle East. Media reports of explosions in Tehran and Israeli Defense Minister’s readiness to resume conflict have heightened unease.
Bond yields and oil prices remain uncomfortably high, noted Adam Turnquist from LPL Financial.
Texas Instruments surged over 20% thanks to better-than-expected results in the first quarter. The company expects its earnings per share this quarter to range from $1.77 to $2.05, compared to analysts’ estimate of $1.57.
ServiceNow (-17.59% at $84.94) saw a decline despite a 22% increase in first-quarter revenue. Adobe and Oracle also experienced decreases despite beating expectations.
Tesla, despite better-than-expected results, was penalized for its substantial spending outlook, with its stock falling by 3.56% to $373.72.
Weekly jobless claims slightly exceeded expectations, but they remain low compared to past norms.
Overall, the market seemed influenced by geopolitical tensions in the Middle East.
