5 Keys to Wall Street by Investing.com

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Investing.com – U.S. stock futures are lower, signaling a continuation of the decline seen on Wall Street the day before as traders continue to assess the impact of Fitch’s downgrade of the U.S. credit rating until earlier this week. Elsewhere, investors are waiting for the release of quarterly results from tech giants Apple (NASDAQ:) and Amazon (NASDAQ:), while Adidas expects smaller marginal losses in 2023 thanks to strong sales of its excess stock of Yeezy sneakers. Here we have five major issues to look out for this Thursday, August 3rd in the financial markets.

1. Futures are falling on selloffs.

U.S. stock futures moved in the red on Thursday, a day after ratings agency Fitch downgraded the U.S. credit rating, triggering a sell-off on Wall Street.

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At 11:18 am ET (11:18 am ET), the contract was down 85 points or 0.24%, 12 points or 0.28% and 55 points or 0.36%.

The day before, the core index recorded its biggest drop since April, while the tech index recorded its worst day since February.

Now attention is likely to return to the stream of corporate results this week as tech giants Amazon and Apple release their latest quarterly reports after the close of trading.

With today’s economic agenda, investors will be able to analyze the weekly data on , which will serve as a prelude to the very important announcement for July on Friday.

2. Qualcomm (NASDAQ:) Sales Forecasts Are Disappointing

Qualcomm released sales forecasts for the fourth fiscal quarter, which fell short of expectations, and announced plans to reduce due to the recent weakening of the smartphone market.

The American chip designer says he now believes this quarter’s revenue will be between $8.1 billion and $8.9 billion. Analysts had forecast $8.7 billion.

Adding to the underlying concerns, the San Diego-based company said it now does not expect “any tangible returns” from Huawei as it does not have a license to sell 5G chips to a Chinese telecommunications group. Qualcomm also says it is likely to be impacted by “significant” restructuring costs associated with downsizing.

The firm’s shares plummet ahead of the US market opening.

3. Apple and Amazon reports

Apple and e-commerce giant Amazon will announce their quarterly results on Thursday in two of the week’s most important corporate earnings reports.

As for Apple, most analysts expect the California-based iPhone maker to report a third straight quarter of revenue decline. The focus is likely to be on any details the company decides to reveal about the current quarter, which ends in September.

At Amazon, the group’s key cloud computing division will be in the spotlight.

Bellevue, Washington-based Amazon said earlier that its Amazon Web Services division continued to slow quarter-on-quarter growth in April. The slowdown may reflect further declines in cloud spending as inflationary pressures encourage customers and individuals to cut some technology spending.

4. Adidas expects fewer losses in 2023 after Yeezy sell-off

Adidas (ETR:) cut its projected loss for 2023 due to strong demand for surpluses of its Yeezy sneaker brand, the German sportswear group said Thursday.

The company stopped selling shoes after it cut ties with designer Ye last year over anti-Semitic remarks by the rapper formerly known as Kanye West.

To avoid a sharp depreciation of the remaining inventory of Yeezy-branded merchandise, Adidas announced in May that it would sell some of those surpluses and donate the proceeds to various charities fighting anti-Semitism and racism.

5. Oil drops on signs of destocking and Fitch downgrade.

Oil prices fell Thursday on concerns about the global economic outlook, even after a record decline in US inventories signaled a significant tightening in crude oil markets.

Official data released Wednesday showed U.S. crude inventories fell by more than 17 million barrels in the week ending July 28, the biggest drop since data collection began in 1982.

The downgrade of the US credit rating by Fitch also weakened the risk appetite for the second day in a row, putting pressure on oil prices. Oil pulled back from more than a three-month high on Wednesday following the ratings agency’s announcement.

By 11:11 am ET (11:11 am ET), IC futures were down 0.18% to $79.35 a barrel, while the IC contract was down 0.24% to $83.00 a barrel.

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About Ankur Jain

I'm Ankur Jain, and I'm thrilled to be part of the suboonews.xyz team as an editor. I call India my home, and I have a passion for crafting engaging and well-written articles. With a solid background of 7 years in this field, I bring a wealth of experience to my work. It's my pleasure to contribute to the informative and captivating content you'll find on suboonews.xyz. Stay tuned for some exciting stories and news pieces coming your way!

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