After the technology and internet shares of the Standard and Poor’s sold off more, the company which is also known by its initials S $ P 500 recorded its lowest level since may on this Friday.
During the session, the benchmark S & P 500 dipped by more than 10 percent from the records of the 20th September, exhibiting a close which was high but incurred loses in order to posses an ending above that level.
After two big companies, Amazon.com Inc also known as AMZN.O and Google’s parent company Alphabet Inc, the stocks of which have been the powerful and strong base of the equity market for more than a decade showed grim results this Thursday, sparking the day’s sell off and overshadowing the data, showed that the US economy continues to grow at a healthy rate.
Investors may witness more of fickleness, the part of the US earnings season that has been left untouched. Ramos suggested that once the earnings and elections are out of their way, they might get hold on a calmer market.
The cloud service provider, Amazon.co witnessed a dip of some 7.8 percent which was the first since October, 2014 after it announced its earnings for the third quarter of the current year which showed that the sales in the most profitable upcoming season would be much less than what was estimated earlier.
It appears as if the Standard and Poor’s 500 might have returned to the negative territory for the remainder of the year. The disappointing corporate results as well as the poor forecast of this morning season despite a stable and healthy economy have clearly showed how the rising wages and borrowings costs compiled with geographical events are hurting the companies to great extend.
Despite the healthy growth of the economy, such corporate results and the forecasts they bear are nothing but disappointing, clearly showing how the tariffs and the wages which are rising along with the borrowings have affected the companies.
Source: Reuters, Todayonline