Food manufacturer Campbell Soup Co. in the 3rd quarter of 2021 fiscal years, which ended on May 2, reduced net profit and revenue, and also worsened the annual forecast. On this news, the company's share price fell 6.5%.
The world's largest express delivery service United Parcel Service said it expects to increase its annual revenues to $ 98-102 billion by 2023. Last year, UPS revenues were $ 84.6 billion. According to FactSet's forecast, in 2021 it will reach $ 93.68 billion. , in 2023 will reach $ 99.92 billion. Nevertheless, the company's shares fell by 4.2%.
Wendy's Co., the third largest fast food chain in the United States, plunged 12.7% after jumping nearly 30% a day earlier. Stifel analysts downgraded their recommendations to Hold from Buy.
Target Corp. lost 1.3% in a day, despite the fact that the retailer announced an increase in quarterly dividends by almost a third, to 90 cents per share.
Caterpillar, one of the world's leading manufacturers of road construction and mining equipment, also increased its quarterly dividend by 8% to $ 1.11 per share. However, the shares of this company also fell in price by the results of the session by 2.3%.
Regeneron Pharmaceuticals Inc. was the leader of the recovery among the companies whose stocks are included in the calculation of the S&P 500. (+ 3.1%), Fox Corp. (+ 2.9%), Biogen Inc. (+ 2.9%).
The most significant rise in quotations among the securities included in the Dow Jones was shown by Merck & Co. Inc. (+ 2.3%), Johnson & Johnson (+ 1.4%) and Amgen Inc. (+ 1.1%).
At the same time, the strongest decline in value was recorded in the securities of Travelers Cos. (-1.2%), American Express Co. (-1.5%) and JPMorgan Chase & Co. (-1.3%).
Traders are awaiting data on changes in consumer prices in May, which will be released today. The average forecast of analysts assumes that inflation will accelerate to 4.7% in annual terms. In April, consumer prices rose 4.2%, the fastest since September 2008.
The US Federal Reserve has previously said inflationary pressures are temporary as the economy continues to recover from the crisis caused by the COVID-19 pandemic. However, the acceleration in the rate of rise in consumer prices is causing concern for analysts and traders.
As a result, the market continues to trade in a fairly narrow range in anticipation of inflation data, while the indices remain close to record levels.
"Since May 27, we started the day with index growth six times, and only once trading ended" in positive territory "- June 4, the day of the release of data from the labor market, - said Michael Kramer, CEO of Mott Capital Management. - The rest of the time we basically ended the day session at practically the same level. "
According to Jack Janasevich, portfolio manager of Natixis Investment Managers, the market is trying to digest what is happening with interest rates. He also noted the recent drop in the yield on ten-year US government bonds to about 1.49% per annum, despite expectations that by the end of this year it may approach 2%.
