Tech-stocks under pressure in pre-markets
We are continuing the pre-market indices where we left them yesterday afternoon: under pressure, especially on the tech side. The highly technological Nasdaq is down -150 points per hour, with the Dow -70 points and the S&P 500 -24. It is shaping up to be a week of decline in markets overall, despite a nice push up after the Fed’s last policy adjustment mid-week.
This adjustment, while promising to dry up the cheap money that has accommodated markets for nearly two years, has answered many questions about the economy in the near term – and as we know, the market has nothing to do with it. worse than uncertainty. Additionally, the Fed has made it clear that ending its asset buyback program by the end of winter does not necessarily equate to an immediate hike in interest rates.
However, the spread of the Omicron variant of Covid-19 is becoming a problem in Europe, and has even spread to parts of the United States. This highly infectious strain promises to be with us for much longer, which helps add more uncertainty to the market. However, two very important things should prevent the panic sale: 1) Omicron has yet to assert itself as a more deadly strain of coronavirus, in fact it may be less so than the Delta variant, and 2) vaccinations work, at least to ward off serious illnesses, hospitalizations and deaths.
So, even with a new outbreak of Covid-19 on a global scale throughout the winter months of early 2022, no stop is appearing in sight. Remind that Pfizer Inc. PFE is also working to market its antiviral pill, which would reduce the effects of Covid as Theraflu works for a person who comes into contact with the flu. There are always risks that things might not look so good elsewhere in the world, but it’s pretty constant. There are also growing tensions between China and Taiwan, if we look for areas of concern.
Either way, we don’t think today’s sales mean much – except, maybe, a good time to shop. If a privileged company in a strong industry with a good Zacks ranking has sold 10% or more, it may be worth taking another look today.
Parent of the olive garden Darden Restaurants, Inc. DRI beat estimates on financial results in its fiscal second quarter earnings report this morning: profits of $ 1.48 per share on $ 2.27 billion in sales topped $ 1.43 per share and $ 2.22 billion from the Zacks Consensus. The full-year revenue forecast of $ 9.55 to $ 9.70 billion is higher than our estimate of $ 9.54 billion, but the full-year profit forecast of between 7.35 and 7, $ 60 a share is significantly lower than the Zacks consensus $ 7.62. In addition, CEO Gene Lee is stepping down from May 2022, replaced by the company’s COO, Rick Cardenas.
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