On Wednesday, Starbucks was among the biggest fallers on the New York stock exchanges. The coffee chain saw turnover and profit rise sharply last quarter, partly thanks to price increases.
Despite the higher prices, the number of orders also increased. In addition, the group saw a recovery in its Chinese activities, which suffered from lockdowns last year. Investors were nevertheless not satisfied and sent the share 7 percent lower.
Cosmetics brand Estée Lauder was also hit and fell almost 21 percent. The company cut expectations in its quarterly results. China’s travel recovery is slower than expected. Estée Lauder, which carries brands such as Aveda, Clinique and La Mer, sells many products to travellers in tax-free airport shops.
The overall mood on Wall Street also remained cautious after the loss the day before. The interest rate decision of the Federal Reserve, which will be announced later in the day, is eagerly awaited. The US central bank is expected to raise interest rates for the tenth time in the fight against high inflation.
Shortly after the start of trading, the Dow Jones index was slightly lower at 33,670 points. The broad S&P 500 rose 0.2 percent to 4129 points, and the tech gauge Nasdaq increased 0.4 percent to 12,123 points.
New data on the US labour market was also released before the start of stock market trading. Pay slip processor ADP said the private sector added 296,000 new jobs in April. That was twice as many as expected.
Banks from PacWest to Western Alliance Bancorp were up 11.5 percent. Regional lenders were still under pressure on Tuesday due to continued concerns about their financial situation after the collapse of First Republic Bank earlier this week.
Ford won 2 percent. The automaker has posted higher sales and profits thanks to strong demand for SUVs and pickup trucks. However, the division making electric cars was still heavily loss-making and will probably end this year with a minus of 3 billion dollars.
Yum! Brands fell 1.5 percent. Owners of fast food chains KFC, Pizza Hut, and Taco Bell saw sales increase but made less profit than expected.