US equity markets were under heavy pressure on Friday with the Dow Jones Industrial Average on track for a fifth day of losses.
|Me: DJI||MEDIUM DOW JONES||33385.93||-437.52||-1.29%|
|I: COMP||NASDAQ COMPOSITE INDEX||14065.05066||-96.30||-0.68%|
The Dow Jones fell about 400 points, or 1.1%, while the S&P 500 and Nasdaq Composite fell by 0.9% and 0.8% respectively.
The choppy session comes as the yield on the 10-year note slipped below 1.5% and was grappling with its lowest levels since early March. Federal Reserve Bank of St. Louis chairman James Bullard told CNBC that a rate hike could take place in 2022, ahead of the Fed’s 2023 target disclosed on Wednesday.
|SQ||SQUARE INC COM||238.56||+2.50||+1.06%|
Growth stocks, including Tesla Inc. and Square Inc., which generally benefit from lower interest rates, were not seeing their usual momentum.
|BAC||BANK OF AMERICA CORP.||38.73||-1.10||-2.77%|
|JPM||JPMORGAN CHASE & CO.||147.88||-3.83||-2.52%|
At the same time, bank stocks like Bank of America Corp. and JPMorgan Chase & Co were weaker as lower interest rates reduced their net interest margins.
|NVDA||NVIDIA CORP.||762.58||+16.29||+ 2.18%|
|UM||MICRON TECHNOLOGY, INC.||76.92||-3.72||-4.61%|
Elsewhere, chipmakers including Nvidia Corp., Micron Technology Inc. and Intel Corp. were mixed up after a bipartisan group of U.S. senators proposed a 25% tax credit for investments in manufacturing semiconductors. US chip production has fallen sharply in recent years to 12% of world production, down from 37% in 1990.
|CAI||CAI INTERNATIONAL INC||55.80||+17.61||+ 46.14%|
In the deals, container rental and management company CAI International Inc. agreed to be acquired by Japan’s Mitsubishi HC Capital Inc. for $ 1.1 billion, or $ 56 per share. The price represents a 47% premium over the stock close on Thursday.
Online marketplace eBay Inc. and Norwegian company Adevinta have obtained regulatory approval for the approximately $ 13 billion deal for the premier’s classifieds business. eBay will receive $ 2.5 billion in cash and 540 million Adevinta shares.
|ADBE||ADOBE, INC.||562.69||+11.33||+ 2.05%|
In terms of earnings, Adobe Inc. beat both top and bottom results, with quarterly profit increasing 23% year over year. The software maker forecasted earnings for the current quarter that were above expectations.
|SWBI||SMITH & WESSON BRANDS||22.99||+3.07||+ 15.41%|
Arms maker Smith & Wesson Brands Inc. said its sales jumped 67% from a year ago to a record high of nearly $ 323 million. The company increased its quarterly dividend from 60% to 8 cents per share and announced a new $ 50 million share buyback program.
In commodities, West Texas Intermediate crude oil slipped 26 cents to $ 70.78 per barrel and gold edged up $ 1.20 to $ 1,776 per ounce.
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Overseas markets were under pressure.
The UK FTSE 100 led the decline in Europe, trading down 1.66%, while the German DAX 30 and French CAC 40 fell 1.61% and 1.29% respectively.
In Asia, Japan’s Nikkei 225 lost 0.19% and China’s Shanghai Composite slipped 0.01%. Hong Kong’s Hang Seng Index outperformed, climbing 0.85%.