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S&P 500 gives up gains as Fed fears persist

Published 08/09/2023, 20:20
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Investing.com -- The S&P 500 was flat Friday, despite a rise energy and tech, but remained on course to end the week in the red as fears that the Fed may have to persist with higher for longer rates weighed on sentiment.

The S&P 500 was flat, the Dow Jones Industrial Average rose 0.03%, 11 points, Nasdaq fell 0.1%.

Energy heads for winning week as oil prices rally

Energy stocks led the market higher, rising more than 1% as oil prices continued to be buoyed by recent supply cut extensions by Saudi Arabia and Russia.

The supply cuts will “ultimately see the drawdown in inventories accelerate into year end,” ANZ Research said in a recent note.

Phillips 66 (NYSE:PSX), Marathon Oil Corporation (NYSE:MRO), Valero Energy Corporation (NYSE:VLO) were among the biggest gainers, with the latter up more than 4%.

Tech climbs as Apple shrugs off further iPhone crackdown in China

Apple Inc (NASDAQ:AAPL) shrugged off worries about China-led demand weakness even as China reportedly expanded its ban of iPhones to local government workers and state-owned companies.

The move followed a day after reports also suggested that Beijing prohibited central government employees from using foreign devices including iPhones amid national security concerns.

Some on Wall Street, however, have said that the China-led selloff in Apple was overblown.“Any China government agency iPhone ban is way overblown,” Wedbush said in a note.” The China government agency makes up “less than 500,000 iPhones of roughly 45 million, “we expect to be sold in China over the next 12 months,” it added.

Kroger delivers beats earnings beat, takes big step to closing Albertsons merger

Kroger Company (NYSE:KR) reported second-quarter earnings that topped Wall Street estimates, but revenue missed expectations as grocery prices slowed.

Kroger also said it would pay more than $1 billion to settle opioid claims, and announced that it would sell 413 stores and other assets to C&S Wholesale Grocers in a $1.9 deal to satisfy antitrust concerns.

The merger remains on track to close in early next year.

DocuSign earnings beat offset by macro fears; Planet Labs falters on earnings stage

DocuSign Inc (NASDAQ:DOCU) reported quarterly results that topped estimates, but the company warned of macro pressures ahead that are likely to dent growth, sending its shares more than 2% lower.

“While we are pleased with our results, like many others, we’re seeing continued macro pressures tempering expansion rates,” chief executive Allan Thygesen said the earnings call that followed the results.

Planet Labs PBC (NYSE:PL), meanwhile, fell more than 12% after the satellite imaging company cutting its annual revenue guidance as reporting a wider than expected loss.

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