Group 6 Copy

2022-07-27 08:15:04 By : Ms. Wendy Lai

By Arthur Cagliari, Valor — São PauloWall Street's three main stock indexes closed down in the session this Tuesday (26), on a day that the investor's mood soured in the face of greater concern about consumption in the United States.In addition to the Walmart outlook review having helped to worsen the outlook for retailers, pulling shares of companies in the sector down, the consumer confidence index fell again, at a faster pace than expected.Faced with the prospect of a slowdown in economic activity, with chances of recession, even the energy sector ended up reversing gains and closing in the negative.At the end of trading, the Dow Jones Industrial Average lost 0.71% to 31,761.54 points, while the S&P 500 was down 1.15% to 3,921.05 points and the Nasdaq was down 1.87% to 11,562.57. spots.Among the sector indices, the biggest loss was in the consumer discretionary segment, down 3.19%, on a day that Amazon shares fell 5.23%, while home and construction retailer Home Depot fell 2,000. 68% and Dollar Tree chain of popular items lost 6.44%.The retail sector was heavily penalized after Walmart revised its forecasts for the year.Yesterday, after the market closed, the American brand lowered its forecasts for the second quarter and for the rest of the fiscal year in the face of high inventory levels and high inflation.The forecast update comes as consumers are cutting spending in response to high inflation.After the review, major banks lowered the range of the company's share value projection.Further complicating the situation for retailers, today, the Conference Board's consumer confidence indicator for July fell below economists' forecast.“As the Fed raises interest rates to contain inflation, purchase intentions for cars, homes and large appliances dropped further in July.Looking ahead, inflation and rate hikes are likely to continue to represent strong headwinds for consumer spending and economic growth over the next six months,” said Lynn Franco, senior director of indicators at the Conference Board.Of the 11 S&P 500 sector indices, only three closed higher: health care, utilities and real estate, which end up being spaces for investor protection in the face of uncertainty.The energy segment, which spent part of the day on the upswing, reversed its gains on growing concern that the economic slowdown could turn into a recession.Oil contract prices also changed sign and began trading below US$ 100 a barrel.Investors' attention now turns to the Federal Reserve's (Fed, the US central bank) monetary policy decision tomorrow.The American monetary authority is expected to raise interest rates by 0.75 percentage point.Investors should also be on the lookout for any mention of a chance of recession.Today, after the market closed, Alphabet, which owns Google, and Microsoft released their quarterly results.The former saw its profit drop by 13.6%, while the latter saw its earnings rise by 1.7%.Revenues from both grew 13% and 12.4%, respectively.Alphabet's shares rose 2.46% in the aftermarket, while Microsoft's were down 1.07%.