Wall Street heads south because of the consumer and technology sectors

Wall Street heads south because of the consumer and technology sectors

On Friday, the major US indices went down amid a drop in the consumer sector led by shares of tobacco manufacturers as well as technology companies.

The market recovered some of its losses at the end of the session after Bloomberg reported that US Deputy Prosecutor General Rod Rosenstein the previous week told President Donald Trump that he’s not targeted by the investigation of the special prosecutor Robert Mueller as for Russia's hypothetical interference in the US elections.

The shares of Philip Morris International, one of the world's largest tobacco companies, dived abruptly after the company reported its quarterly results, which didn’t appear to be in line with forecasts.

The sale of chip makers' shares provoked a warning from Taiwan Semiconductor, the world's number one producer of semiconductors as well as the supplier Apple, about weak demand on smartphones and a slower growth than previously forecast.

In addition to the disappointing financial results of Philip Morris and Procter & Gamble Co, pressure on the consumption sector was also exerted by an increase in the yield of 10-year US state bonds, which underpinned bank equities.

The Dow Jones index dived 0.34% to 24,664.89, while the S&P 500 index lost 0.57% hitting 2.693.13. As for the Nasdaq Composite index, it went down 0.78% being worth 7.238.06.

S&P dived by 3.2%. Paper Philip Morris lost 15.6%, shares of Altria, the parent company Philip Morris USA, headed south 6%.

The shares of Procter & Gamble inched down 3.3% after the company reported that a reduction in the stock of retailers as well as an increase in the cost of raw materials and transportation hit its margin.

Apple shares went down 2.8% because many analysts felt that TSMC's warning of weak sales of smartphones was mainly triggered by fears as for demand for the iPhone.

 

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