Tech stocks had a rough day, but that’s okay – News Block

Tesla Inc.’s Model Y electric vehicle during the launch in Kuala Lumpur, Malaysia on Thursday, July 20, 2023.

Samsul said | Mayor Bloomberg | fake images

This report is from today’s CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up to speed with everything they need to know, no matter where they are. You like what you see? you can subscribe here.

What you need to know today

dow exceeds
US stocks traded mixed on Thursday, with the Dow Jones Industrial Average the only major index to post a victory. Asia-Pacific markets fell on Friday. Japan’s Nikkei 225 lost around 0.3% after the country’s core inflation rate rose to 3.3% yoy, ten basis points above the May reading. Separately, TSMC shares sank about 3% after reporting their first quarterly profit decline in four years.

Rice prices rise
Whether your carb of choice is rice, bread, or noodles, expect to pay more for it. India has banned the export of non-basmati white rice from Thursday in a bid to rein in high food prices nationwide. World rice prices are already at a record high due to shortages. Wheat prices also rose this week after Russia withdrew from the Black Sea Grain Initiative.

Elon Musk, CEO, CTO, Founder
Elon Musk is CEO of Tesla and SpaceX; Twitter CTO; founder of Neuralink, The Boring Company and now xAI. Those overlapping roles at multiple companies worry some analysts and investors, who think Musk could get distracted or his various companies could end up competing with each other.

Breach by China-linked hackers
China-linked hackers breached the email account of US Ambassador to China Nicholas Burns, NBC News confirmed. The hackers also accessed the email accounts of Daniel Kritenbrink, Assistant Secretary of State for East Asia, and Gina Raimondo, Secretary of Commerce. The attacks are part of a recent targeted intelligence-gathering campaign, two US officials confirmed.

(PRO) Undervalued Global Stocks
The global stock markets are not attracting as much attention as the US markets, so bargains are often overlooked. Morgan Stanley chooses a list of global stocks that it believes will beat the market, and are priced below what the bank believes they are worth.

The bottom line

Since late May, when the frenzy around Nvidia began to build, tech stocks have been driving the Nasdaq Composite higher, while the Dow Jones Industrial Averagecomprising fewer tech stocks, has languished.

Yesterday was a reversal of that trend.

The Dow rose 0.47%, its ninth straight day of gains and its longest winning streak since 2017. johnson and johnsonwhich rose 6% after the company posted better-than-expected second-quarter results and raised its outlook for the year. Goldman Sachsanother Dow component, rose 3%.

Meanwhile, the Nasdaq plunged 2.05%, its worst day since March, heading for a negative week. The technology index was dragged down by the fall in shares of Netflix and tesla. Netflix fell 8.4% after posting revenue that disappointed analysts, while Tesla plunged 9.7% because the company’s earnings call did not clarify delivery and production plans for the year. Other technological actions, such as Amazon and nvidiafell in sympathy and lost more than 3%.

He S&P 500 it also fell 0.68%.

Still, this could be a temporary aberration due to the earnings reports. There are no signs that investor enthusiasm for artificial intelligence has died down; remember how Microsoft shares hit a record high on Tuesday after the tech company announced its subscription plans for AI.

Additionally, the Dow is up 6.3% year-to-date, while the Nasdaq is up 34.4% in the same period. It would take a lot more than one bad day to halt the momentum of tech stocks.

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