Unlucky for some perhaps, but a 13th today would make it the longest winning streak for the Dow since 1987.
But this year’s supercharged tech sector has been more hesitant in returning to the year’s highs as its leading lights dish out earnings updates, with a high bar to impress given the scale of AI-infused share price already in 2023.
Tesla and Netflix stumbled last week despite headline profit beats and Microsoft’s ostensible forecast-beating earnings were the latest to underwhelm overnight, as disappointing projections for its cloud business sent its stock down 4% out of hours.
Snap plunged 20% before the bell as its guidance fell short too.
It not impossible to wow the gallery though.
Google parent Alphabet climbed 7% after hours as its results beat was accompanied by a surprising rebound in advertising and warmer words on its cloud operations.
Meta Platforms is up next after Wednesday’s closing bell and its share rose 2%. Amazon lost 2% on reports the Federal Trade Commission is finalizing an antitrust lawsuit against the firm.
The net impact on overall index futures has been marginal so far on Wednesday – a tick down in Nasdaq and Dow futures and a modest nudge up in S&P500.
The wider market is held in check awaiting the Federal Reserve’s latest quarter-point interest rate rise to 22-year highs of 5.25-5.50%, possibly its last in the cycle if futures are correct. U.S. two-year Treasury yields retreated into the decision and the dollar dialed back too.
In the background, the regional bank sector was enlivened by more merger activity.
Shares in PacWest rose nearly 38% in premarket trading after news that smaller rival Banc of California, which rose 14%, had agreed to buy the lender for $1.1 billion.
Wells Fargo, meantime, climbed 2.8% after the bank’s board authorized a new $30 billion share buyback program.
The Fed decision comes in the wake of another set of forecast-beating U.S. consumer confidence readings for July.
Economists assume the central bank will retain a hawkish tone but keep its options on another hike open as it will have almost two months of data to assess before meeting again on September 20.
Elsewhere, the European earnings season was in full swing too, with banks dominating the diary and the European Central Bank meeting tomorrow. Deutsche Bank stock fell 1% after the lender reported a 27% fall in quarterly profit as an investment banking slump offset higher interest income.
With the Bank of Japan also meeting this week, the yen fell back after a top government official quoted BOJ Governor Kazuo Ueda as saying he will maintain accommodative monetary conditions.
This week’s China’s stock rebound also cooled amid a lack of detail around the Politburo’s economic stimulus plans and as property worries continued to rankle. Trading of Chinese property developer Country Garden’s bonds was halted after a more than 20% drop in price on Wednesday.
