Wall Street turns red


    The stock exchanges in New York were clearly red in the middle of the trading day on Thursday. As a result, the major indexes on Wall Street performed in line with exchanges worldwide, which experienced losses in the wake of the increasing tensions between the United States and North Korea. The war threats between the countries also led to declines on Wall Street on Wednesday.

    The leading Dow Jones index was 0.93 percent lower at 21,844 points. The broad S & P 500 dropped 1.45 percent to 2438 points and the Nasdaq lost 2.13 percent to settle at 6216 points.

    Retail chains like Macy’s and Kohl’s caught the attention in the start. Macy’s sank almost 10 percent and marked new low. The company saw sales decline, but profits went significantly upward. The results were above expectations but prospects were on the weak side.

    Kohl’s reported that profit in the second quarter has clearly increased, with slightly lower sales. The shares saw its price drop by around 6 percent.

    Blue Apron experienced a 15 percent drop after opening the books. Especially the sharp rise in operating costs disappointed investors. It was for the first time that Blue Apron reported quarterly listings as a publicly traded company. At the end of June, the Meal-kit delivery company made its debut on Wall Street.

    The stock fell after reducing its second half of the year guidance due in part to delays at its new factory in Linden, New Jersey. The company was betting high on it but the delays have “changed our strategic approach in managing the business for the remainder of 2017,” Chief Financial Officer Brad Dickerson said on the call. It now expects sales in the range of $380 million to $400 million and a net loss somewhere between $121 million and $128 million.

    Perrigo reported better-than-expected Q2 results. In addition, the company increased its profit forecast for the whole year. Investors certainly appreciated that news and stock jumped 17 percent.

    Media group 21st Century Fox grew 0.8 percent after its earnings report. The company earned more money with ads. Furthermore, the number of subscribers remained stable, with a drop in sector-wide.

    On the economic front, investors responded to slightly disappointing figures about producer prices that fell unexpectedly a fraction in July on a monthly basis. In addition, the number of applications increased for jobless claims, which was counted on a decrease.

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    I am a lecturer at the University of Economics in Bratislava, department of Banking and International Finance. I have a Ph.D. academic degree, my dissertation was focused on major markets. Commodities and stock markets are also the main focus of my research and publication activities. I have approximately 10 years of investing experiences. My investments mostly focus on small- to mid-cap companies of energy sector, financial and technology.