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Two day losing streak for the major US indices

The US major indices are ending the day with declines on the day in an up and down session. The Dow led the declines thanks to a sharp decline in Caterpillar shares after their earnings report disappointed. Caterpillar shares fell $11.35 or -5.82% at $183.51. Other losers today in the Dow included:

  • Boeing -3.46%
  • Intel, -2.57%
  • Visa, -2.43%
  • Nike, -2.22%

A look at the final closing numbers shows:

  • Dow fell -402.25 points or -1.23% at 32396.18
  • S&P fell -27.44 points ro -0.67% at 4091.20
  • Nasdaq fell -20.21 points or -0.16% at 12348.77
  • Russell 2000 fell -0.86 points or -0.05% at 1882.44

After the close:

AMD is disappointing:

  • EPS $1.05 vs $1.03 et
  • Rev 6.55B vs 6.53B est

The bad is that they guided lower for the Q3 at 6.5 to 6.9B vs 6.81B

Starbucks earnings:

  • EPS. $0.84 vs $0.75
  • Rev $8.15B vs $8.11B est.

Paypal

  • Rev 6.8B vs 6.78B est
  • EPS $0.93 vs $0.86 est

Fed’s Evans: 50 bps in Sept is a reasonable assessment, 75 is also ok

  • 50 bps is reasonable, 75 bps is ok, I doubt 100 bps is called for
  • Says he’s hopeful they can do 50 bps in Sept end then continue with 25 bps hikes until the beginning of Q2 2023
  • There’s still a reasonable expectation that tightening into next year will lead to a restrictive setting but allow for reasonably strong labor market
  • I see policy rate between 3.75-4.00% by the end of 2023
  • It’s possible we get a soft landing but there are a lot of risks
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