"After an impressive bullish run, the major indices are coming under pressure. At the moment, the S&P 500 is down about 1.1%, or by 81 points. The SPDR S&P 500 ETF (SPY) is down 1.18%, or by $8.80. The Dow is down 0.8%, or by 400 points. The Nasdaq is down 1.54%, or by 456 points. Oil is up by $3 at $104.24. Gold is down by nearly $125 at $4,552.51."
"Part of the reason for this was the fact that the Trump-Xi meeting ended with no major deals. Plus, according to some analysts, the unsustainable move in tech stocks is starting to break down. However, some tech giants, like Microsoft (NASDAQ: MSFT), are moving higher this morning after Bill Ackman's Pershing Square said it built a position in the MSFT stock after it pulled back and offered an attractive valuation."
""We were able to establish our position at a valuation of 21 times forward earnings, broadly in line with the market multiple and well below Microsoft's trading average over the last few years," Ackman wrote, as quoted by CNBC. While Ackman didn't note the size of his stake in the tech giant, he called it a "core holding.""
"Cisco (NASDAQ: CSCO) just posted third-quarter numbers that were better than expected. For the quarter, Cisco's EPS of $1.06 was above estimates of $1.04. Revenue of $15.84 billion was also above expectations of $15.56 billion. Moving forward, the company is forecasting fourth-quarter adjusted EPS of $1.16 to $1.18 per share on revenue of $16.7 billion to $16.9 billion. Analysts were looking for fourth-quarter adjusted EPS of $1.07 on revenue of $15.82 billion."
The S&P 500 fell about 1.1% and the Nasdaq dropped about 1.54%, while the Dow declined roughly 0.8%. Oil rose to around $104.24, while gold fell by nearly $125 to about $4,552.51. The lack of major deals from a Trump-Xi meeting and concerns that an unsustainable tech rally was breaking down contributed to the pressure. Microsoft moved higher after Bill Ackman’s Pershing Square disclosed it built a position in MSFT at about 21 times forward earnings, described as a core holding. Cisco also gained attention after reporting third-quarter results above expectations, issuing stronger guidance, and citing AI infrastructure and hyperscaler orders.
Read at 24/7 Wall St.
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