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US Stocks: Dow Falls as S&P 500, Intel Slide

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The Dow and the S&P 500 indexes slid in choppy trading on Wednesday, after a bearish brokerage report dented Intel shares, while the Nasdaq gained gains in Tesla and Apple.

Eight of the 11 major S&P sectors were lower, with industry, real estate and consumer staples down between 0.7% and 0.9%, respectively.
Intel fell 3.8% and was the biggest drag on blue-chip and benchmark indexes after analysts at Citi Research cautioned that the chipmaker could pre-declare weaker-than-expected earnings for the second quarter.

Altria, which was also a major pressure on the S&P 500, slipped 6.7% after a report that Morgan Stanley Downgrade the tobacco company’s stock to “underweight” over competition concerns.

The energy sector was among the gainers, as Brent crude was trading near $122 a barrel. The sector has grown by 65% ​​this year and is on track for a 2022 bumper.
“Investors are concerned about where energy prices are going. All you see is people rebalancing some positions and waiting somewhat for a better indication that maybe inflation will ease in recent days,” said Rick Meckler, a partner at Cherry Lane Investments.

“You’re just going to see more choppiness, there’s really no breakthrough news in the market, both in terms of earnings and economics.”
Against the backdrop of rising borrowing costs, this week will focus entirely on the Friday Consumer Price Index data.

The prospect of a warmer reading will leave markets already worried about how the US Federal Reserve will balance growth and inflation as it withdraws its pandemic-era policy support for the economy.

The benchmark S&P 500 index has climbed 9% since May 20, after falling 20.05% so far this year. It was 12.9 per cent lower for the previous year. The blue-chip Dow is down 9% and the tech-heavy Nasdaq is down 22%.

The CBOE Volatility Index was last trading at 24.20 points, well above its long-term average of around 20 points.
At 10:02 am, the Dow Jones Industrial Average was down 103.37 points, or 0.31%, at 33,076.77 and the S&P 500 was down 8.79 points, or 0.21%, at 4,151.89.
The Nasdaq Composite was up 28.08 points, or 0.23%, at 12,203.31, Tesla Inc. shares were up 4.3%.

Apple Inc rose 0.6% for the third straight session.
Western Digital Corp gained 1.6% after the memory storage device maker said it was reviewing options, including divestment of its flash-memory and HDD businesses.
The number of rejected issues outweighs advances to a 1.88-to-1 ratio on the NYSE. Advancing issues declining from a 1.20-to-1 ratio on the Nasdaq.
The S&P index recorded three new 52-week highs and 29 new lows, while the Nasdaq recorded 21 new highs and 31 new lows.



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