Stock markets in New York were slightly lower on Tuesday after the rebound a day earlier. Investors remained cautious amid interest rate fears and concerns about the economic impact of the corona lockdowns in China.
In addition, we mainly wait for the results of tech group Microsoft and Google parent company Alphabet, which will come out after the closing bell.
Shortly after opening, the Dow-Jones index was 0.8 percent lower at 33,788 points. The broad S&P 500 also fell 0.8 percent to 4260 points, and tech gauge Nasdaq lost 1.4 percent to 12,826 points.
Microsoft lost 1.7 percent. The company’s quarterly update focuses mainly on the Xbox branch, which has struggled to meet the demand for game consoles in recent quarters due to the chip shortage.
At Alphabet (minus 2.4 percent), attention will be paid to advertising revenue. The company collects data about internet users and is increasingly under fire from the authorities. Google uses this data to be able to sell targeted advertisements.
PepsiCo added 0.6 percent. The soft drinks and snacks producer achieved more turnover than analysts had expected last quarter. Profits were also higher. The manufacturer of Gatorade and Doritos, among others, benefited from the reopening of the catering industry in many countries and raised its sales forecast for the entire year.
UPS fell 3.3 percent. The parcel carrier saw turnover increase more than expected in the first quarter. Profits also rose more than expected. The company maintained its expectations for this year and doubled its share repurchase program to $2 billion.
General Electric fell 8.6 percent after the release of its quarterly results. The industrial group, which previously announced its intention to split into three separate publicly traded companies, warned that profits this year could end up at the lower end of the previously announced range due to high inflation.
Twitter, which will release figures later this week, lost 2 percent to $50.66. The social media company rose nearly 6 percent on Monday after the board approved the takeover offer from Tesla boss Elon Musk. The share price is still below the $54.20 each that Musk has put on the table. Regulators will probably still look at the deal shortly. The acquisition is expected to be completed before the end of the year.